E Ink is synonymous with ePaper

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Becoming Synonymous with ePaper: Building Dominance and Benefiting the Entire Ecosystem with Patents

Twenty-seven years ago, Mr. Ho Shou-chuan, the founder of E Ink, foresaw that electronic paper displays from the Massachusetts Institute of Technology (MIT) would replace traditional paper. Since then, E Ink, initially producing TFT-LCD, has embarked on a journey to dominate the global market. Following three strategic global mergers and acquisitions, supported by thousands of patents, E Ink has implemented a research and development strategy that taps into high co-opetition to maintain technological leadership. The company has successfully established a dual-focused business model for the Internet of Things (IoT) and consumer electronics, fully committed to creating an industry wide beneficial ecosystem. E Ink has proudly achieved 100% green revenue, marking a remarkable journey from MIT in the US to "MIT" (Made in Taiwan.)

E Ink confidently asserts its dominance, commanding over 90% of the global market share for electronic ink film, effectively positioning itself at the head of an oligopoly. This success is bolstered by a strategic sharing of benefits, steering the ePaper industry toward a thriving ecosystem.

This journey began with YFY Inc.'s establishment of Prime View International (the former name of E Ink) in 1992. At that time, investment was driven by the recognition of the emerging digital trend, foreseeing that LCD technology would become the mainstream for displays and replace traditional paper. This led to the establishment of Taiwan's first small and medium-sized TFT-LCD facility to produce gen 2.5 panels.

However, when founder Ho Shou-chuan visited the Massachusetts Institute of Technology in 1997, he was captivated by the potential of ePaper display technology and convinced that it was the true future substitute for paper. The company decided to transform and focus on developing ePaper, halting its expansion into larger panel sizes. Ultimately, it officially phased out its LCD business at the end of 2016.

The key to E Ink's leadership in ePaper technology has been its strategic mergers and acquisitions of major ePaper makers, including Philips' ePaper division in 2005; E Ink, an MIT-spun off ePaper maker, in 2009; and SiPix, with its bistable technology, in 2012. These moves have helped the company amass a vast portfolio of patents, gradually integrating the entire ePaper supply chain, and marketing globally under the E Ink brand.

iPad Impacts E-Readers: Transition to ePaper Labels

In its early days, E Ink primarily focused on e-book readers. In 2004, Sony launched the first e-reader using E Ink technology in the United States, sparking widespread discussions about the potential of ePaper to replace textbooks and printed books. With the rise of music and movie streaming, the rise of e-books seemed imminent.

But then in 2009, Apple released the iPad, a multi-functional tablet that significantly impacted the ePaper industry. Traditionally, e-readers were limited to reading functions, but the emergence of the iPad offered consumers more options, denting the demand for E Ink's ePaper products. This prompted the company to diversify, prioritizing the identification of new applications to stabilize the business.

ePaper labels emerged as the innovative successor. From 2012 to 2016, the R&D team shouldered a significant responsibility as they supported exploring this new application and business opportunity, successfully integrating it into the company's development roadmap.

"By 2016, we had determined that e-paper labels would be our new development direction, ushering the company into a new phase," said CEO Johnson Lee. "Although sales of e-readers are declining, it remains a relatively mature market. The business potential of ePaper labels continues to grow, giving us confidence that we've made the right decision."

The use of electronic shelf labels (ESLs) significantly helps retailers improve operational efficiency and manage inventory more effectively. Especially with labor shortages during the COVID-19 pandemic, the value of ESLs was fully demonstrated, addressing the need for real-time updates on prices and inventory information.

"Over the past year, we've collaborated with partners to help more than 350 retail stores conduct up to 4 billion price updates, which is equivalent to saving 1.6 billion sheets of A4 paper," highlighted Dr. FY Gan, President of E Ink, pointing out that this significant reduction in paper usage underscores the contribution of ePaper to environmental sustainability.

Prioritizing Long-Term Gains and Building a Mutually Beneficial Ecosystem

In navigating the burgeoning ePaper market, the cornerstone of E Ink's growth hinges on cultivating the application market and sustaining investment in research and development, given the relatively nascent technology.

"It is indeed challenging to allocate about 16-18% of our annual revenue to research and development, especially within the prevailing OEM mindset in Taiwan. The evolution of ePaper from black and white to color represents hundreds of millions of US dollars invested in R&D. Despite numerous setbacks, these challenges have not deterred us, " Johnson Lee stated.

"Investing close to US$100 million in R&D each year puts enormous pressure on the management team," Lee said bluntly. "However, we have the firm support of our founder Ho Shou-chuan, the board of directors, and our shareholders. Prioritizing longterm development over short-term gains is what sets us apart and our enduring strategy. Our goal is to become a truly great company."

Through relentless innovation, raising the technological threshold, and a meticulous patent strategy, E Ink has secured a global market share of over 90% in ePaper materials. Despite this dominance, it chooses an unconventional path—focusing on long-term commitments to industry partners and dedicating itself to the mutual benefit of the ecosystem, rather than prioritizing short-term profit maximization.

Lee noted that during the COVID-19 pandemic, the global electronics industry faced supply chain pressures and rising raw material costs, leading many suppliers to raise their prices. E Ink also faced similar pressures, but after thorough deliberations, the management team decided against raising prices. "As the sole supplier in the market, we certainly have the ability to adjust prices," Lee expressed. "But we prioritize a long-term vision and are committed to maintaining the trust of our partners."

This ethos of mutual benefit is evident in its pricing strategies as well as in its exploration of the new market for e-labels. E Ink aims not just to operate as a company but also to actively foster the ecosystem for the ePaper industry. A key component of their strategy is the company's dual-focused business model.

This model is two-pronged: one for the IoT (such as e-labels) and one for consumer electronics. In the IoT segment, E Ink supplies ePaper materials to ten module manufacturers, with pricing determined by market mechanisms. In consumer electronics, the company has full control over pricing, from materials to modules. This dual-focused approach solidifies E Ink's market position at the source and envisions a promising future in the IoT market. It benefits and promotes the healthy development of the overall ePaper industry chain.

Yet, how does one find like-minded partners to explore new markets in an uncertain future? "This requires first establishing successful and profitable cooperation cases with E Ink, " Lee reflected.

Once it had a successful first mover, more companies quickly joined the partnership, and now the number of partners has grown to ten. This proves that E Ink has led the way in building a win-win ecosystem and shows that, amid intense market competition, sharing profits and deepening cooperation indeed propel the ePaper industry towards positive growth.

Ecosystem Allies: Driver IC for Four-Color Innovation

Electronic paper display differs from traditional LCD or OLED as it uses tiny ink particles that move under an electric field to display images, a technology known as electrophoretic display. This unique display method necessitates a specific driver IC to control the display effect, making it essential to collaborate closely with IC design houses. The partnership focuses on developing cost-effective products that also cater to diverse product lines.

To ensure supply chain stability and costeffectiveness, E Ink pursues a strategy of engaging at least two IC suppliers for each type of product. On one hand, this mitigates the risk of supply chain disruptions, and on the other, it controls costs through competitive mechanisms, ultimately offering more choices and flexibility for module partners.

Fitipower is one of the driver IC suppliers for E Ink's ecosystem. Young Lin, Chairman and CEO of Fitipower, shared two stories illustrating how close cooperation between them has left significant marks on the evolution of ePaper display.

"We've developed four generations of products with E Ink, each bringing its own set of technological challenges. For example, the earlier eReaders could use a faster page-turning speed, a feature eagerly anticipated by consumers. Achieving this involved more than just IC design. We had to conduct joint research on panel structure and material properties, which eventually led to more efficient page-turning and enhanced reader experience.”

Another story involves ePaper labels. Originally, e-labels used in supermarkets were only available in black and white. Over time, they evolved to include black, white, and red. Most recently, a fourth color has been added—yellow. These four colors not only create a richer visual effect but can also produce new colors, such as orange, helping to capture the attention of on-site customers.

But adding a color requires a dedicated IC driver. Fitipower not only participated in the joint IC development initiative led by E Ink but also committed significant resources. Within just ten months, they produced IC drivers for ten resolutions, enriching the product line in collaboration with E Ink and tapping into new customer segments.

From Supplier to Client: Fostering Ecosystem Comradeship

Innolux President James Yang recalled a memorable story about being a supplier of TFT backplanes for E Ink. Before the COVID-19 pandemic, E Ink faced a significant challenge: a large order for ePaper from the United States needed to be fulfilled days before the Lunar New Year, also coinciding with the company's annual banquet.

"A large order for E Ink was fantastic, but the delivery deadline was extremely tight. Johnson was struggling to meet the capacity needed for the delivery in Taiwan. Upon learning that then Innolux President Wang Jyh-chao and I were in Shenzhen, he made the effort to meet with us and asked for our assistance in boosting production capacity," said Yang. "Ultimately, we allocated our 4.5th generation production capacity of our Zhunan headquarters to help E Ink deliver on schedule.”

Yang quipped that this was a classic case of neighborly support, alluding to their Tainan roots. He acknowledged that the E Ink team has developed and expanded the ePaper technology from MIT in the United States to achieve the world's number one market share under the MIT (Made in Taiwan) name. "Being part of this incredible journey with E Ink has been a privilege and a source of pride for Innolux and myself," added Yang.

Additionally, with E Ink's success in the iteration and development of ePaper technology, particularly the introduction of large-size thin film, Innolux has transitioned from being a supplier to becoming a client.

When E Ink ventured into large-sized ePapers for markets such as smart retail and public electronic displays, Innolux saw energy saving as the right direction and joined the initiative, further investing in the cultivation of professional talents. Yang expressed, "We've invested in a team of engineers with expertise in designing large-sized ePaper structures, optics, reliability, and product management. We then buy materials from E Ink, assemble the modules ourselves, and sell them."

Cross-Border R&D Centers: Balancing Competition and Collaboration

Taking into account the needs of its partners, E Ink's success in recent years stems from its ongoing market expansion and aggressive technological innovation. Particularly through three major mergers and acquisitions, it has harnessed powerful R&D momentum from international professional teams.

Currently, E Ink operates three R&D centers globally, including sites on both the east and west coasts of the United States. These R&D centers are strategically located near top universities and research institutions, providing the company with access to cutting-edge scientific research and opportunities to recruit top-tier talent. Meanwhile, being in tech innovation hubs like Silicon Valley further allows E Ink to engage in exchanges and collaborations with mainstream technology heavyweights.

Notably, each R&D team has its own unique color technology platform. The company's strategic approach encourages these teams to compete with one another while also collaborating when necessary. FY Gan emphasized, "In a market with limited competitors, this mode of internal competition and collaboration helps avoid technological stagnation. It is equally important for driving technological innovation and maintaining our market lead."

How does it foster collaboration and competition among scientists from diverse backgrounds to achieve effective cooperation? In addition to sharing common goals and vision and offering incentives such as stock options and bonus dividends, E Ink's leading position in ePaper materials has greatly contributed to fostering collaboration.

Gan stated plainly, "These scientists all share a common passion for ePaper technology, and E Ink is the best place for them to realize their scientific research and innovation ambitions." By successfully integrating R&D talent, innovating technologies, and dedicating efforts to managing organizational culture and international talent, E Ink continues to reinforce its leading position in the market.

Financial Sustainability: The True Value of Collaboration

With the global shift from corporate social responsibility to a broader emphasis on environment, social, and governance (ESG), E Ink has also embarked on this transformation journey. In response to the vast challenges presented by ESG, it has initiated internal changes by establishing a dedicated task force to ensure the effective execution of its strategic transformation.

Although initially considering building a large team and seeking guidance from external experts, E Ink ultimately chose to form a lean, efficient team of five to drive this initiative. It has innovatively assigned the CFO the additional responsibility for sustainable development goals. This decision highlights E Ink's commitment to closely integrating financial management with social and environmental responsibility, while also underscoring its determination to promote sustainable development within the supply chain.

Johnson Lee explained the rationale, "Having one Chief Sustainability Officer (CSO) specifically for managing ESG responsibilities could potentially limit our perspective. The scope of ESG is extensive, and the real value lies in collaboration across departments."

"From a financial standpoint, we can more comprehensively assess the effectiveness of investments, ensuring that resource allocation aligns with the overall financial health of the company. After all, implementing projects requires financial support and precise investment management. Identifying core investment areas is crucial. Particularly concerning environmental protection, it not only pertains to our own operations but also encompasses the entire supply chain, involving communication and collaboration with suppliers. It is a lengthy journey, certainly not a task that can be accomplished in the short term."

Lloyd Chen, CFO and Secretary of the ESG Committee at E Ink, pointed out, "Some people may view sustainability development as merely a form of 'greenwashing'. However, we believe the crux lies in truly embracing this concept and integrating these principles into our daily operations."

For example, before the widespread adoption of ESG concepts, company decisions were often based on cost. Now, as times have changed, environmental standards are considered when designing new products. This demonstrates that the concept of sustainability has been internalized and represents a significant transformation in corporate culture.

Furthermore, E Ink's commitment to sustainable practices has not only deepened its understanding in this field but has also garnered significant recognition both internationally and locally over the past few years. Chen stated, "We have been recognized by international institutions like DJSI, FTSE, MSCI, and have also been affirmed among the top sustainable companies in Taiwan for our corporate governance. Our ranking has improved from the initial top 20% to the top 5%."

E Ink has been conducting bi-weekly crossdepartmental discussions on ESG issues. These meetings are alternately held in the morning and evening to accommodate the participation of overseas colleagues, especially those in the United States. This practice not only promotes the ESG adherence but also bridges cultural differences within the company and fosters the exchange of diverse ideas.

Since 2020, E Ink has begun strengthening the sustainable management of its supply chain. Johnson Lee emphasized, "We are not just passively influenced by the ecosystem chain; we actively seek to influence it. We drive this process through care and stakeholder interest, helping our ecosystem partners understand the benefits of cooperation, thus creating positive momentum."

These efforts have borne fruit, as evidenced by E Ink's scores in the Corporate Sustainability Assessment (CSA), which climbed from 60-65 points in 2021, to 77 points in 2022, and to 89 points in 2023, making it the highest-scoring company in the global ICT field and surpassing other benchmark enterprises in Taiwan.

E Ink's achievements are further highlighted by its recognition in numerous national-level awards in Taiwan, including the Distinguished Enterprise Innovation Award from Ministry of Economic Affairs' National Industrial Innovation Award and the most recent Presidential Innovation Award. The company originally planned to win the Presidential Innovation Award by 2026. However, the team achieved this goal ahead of schedule, demonstrating their commitment to sustainable development and their ability to deliver results in practice.

"There are two reasons for participating in various awards and competitions. First, external recognition helps more people become aware of us and attracts top talents.” Lee concluded, "Secondly, each award and evaluation provides feedback, helping us understand our strengths and weaknesses. Participating in award selections allows us to fully identify our blind spots and continuously improve."

Mantra for Success

• It has acquired three key ePaper display companies and secured thousands of patents as staunch technology support. It has maintained R&D bases, continued to develop unique technological platforms, and promoted technological innovation both competitively and collaboratively to maintain market leadership.
• Implementing a dual-focused business model: For the IoT market primarily focusing on e-labels, multiple module manufacturers are authorized to compete through market mechanisms through its licenses. For the mature e-reader market, pricing control is maintained throughout the entire process from materials to modules. These dual efforts have promoted the overall healthy development of the ePaper industry ecosystem.
• It cultivates at least two IC suppliers for each product type to secure the exclusive source of the required IC drivers for the unique display method of ePaper. On one hand, this mitigates the risk of supply chain disruptions, and on the other, it controls costs through competitive mechanisms, ultimately offering more choices and flexibility for module partners.

得獎感言－E Ink is synonymous with ePaper Johnson Lee CEO of E Ink

Prioritizing long-term development over short-term gains is what sets us apart and our enduring strategy.

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• Date of announcement：2024/12/02
• Last updated： 2026/07/22
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