TOVIS's automotive display division is set to spin off in May as a new company tentatively named Neoview. As cars become more advanced, including with software-defined vehicles (SDVs), demand for displays is surging. The goal is to concentrate capabilities on automotive displays and actively target the global market. TOVIS currently operates with a casino monitor division focused on gaming displays and an automotive display division.
The automotive display division supplies in-vehicle display solutions to LG Display, Hyundai Mobis, Denso, and Continental. In 2024, TOVIS posted annual revenue of 623.7 billion won and operating profit of 58.4 billion won, with the automotive display division accounting for 51.7% of total revenue. In Sep. last year, it won an order for a new automotive display model worth 500 billion won.
Ha Hee-jo (76), TOVIS's co-CEO, met with ChosunBiz at TOVIS's Anyang plant in Anyang, Gyeonggi, on the 9th and said, "We have grown our business by supplying automotive display solutions to Hyundai Motor and to automakers in Europe and North America. We will also push into the Japanese market so we can surpass 1 trillion won in revenue," adding, "By focusing on the automotive display market, we will seek a revaluation of our corporate value and pursue the business more aggressively."
Ha joined LG Electronics in 1978 and served as head of the digital microcircuit division, then moved in 2002 to become CEO of Neodys, a mobile display company. After Neodys merged with TOVIS in 2007, Ha has led TOVIS's automotive display business. Ha is expected to lead the newly independent Neoview as CEO.
The automotive display division manufactures and supplies in-vehicle display solutions, including head-up displays (HUDs), center information displays (CIDs), side-mounted displays (SMDs) on vehicle flanks, passenger displays (CCDs), instrument clusters, and rear-seat entertainment displays. Working with LG Display, it ultimately supplies displays to European automakers such as Mercedes-Benz, and together with Hyundai Mobis, it supplies to domestic automakers such as Hyundai Motor Group and to the North American market, including GM.
When TOVIS entered the automotive display business, the market had not yet fully opened. Although it had no experience in the field, the technological prowess it built in mobile became the source of its competitiveness. Ha said, "You cannot put a display in mobile devices with only panel manufacturing capabilities. You must optimize size and thickness to match the product lineup and reconfigure components to meet the performance customers require."
Ha added, "We transplanted the technological capabilities honed in the mobile display market into the automotive display business. When LG Electronics exited the mobile business, the display engineers we had worked with moved into the auto industry and recommended TOVIS as a collaboration partner, enabling us to enter the business."
Ha said, "In the early days, automakers were reluctant to install many displays inside vehicles. But as cars have become more advanced, including software-defined vehicles (SDVs), demand for displays has grown," adding, "As Hyundai Motor Group sought to build a domestic display supply chain, TOVIS was able to align with that plan, and orders began to expand in earnest." The following is a Q&A with Ha.
— What is your outlook for the automotive display market?
"I do not expect a sharp increase in auto shipments. However, I expect the automotive display market to grow steadily, because the number of displays installed in newly shipped vehicles is increasing. As software in new models becomes more advanced and infotainment functions are added, multiple displays are essential.
Compared with the past, auto consumers also have stronger demand for displays. It is now common to have displays not only for the driver but also for the passenger and rear seats. As models equipped with multiple displays gradually increase, the automotive display market is also expected to grow."
— What is your strategy to target the automotive display market?
"Unlike large display corporations, TOVIS can focus solely on the automotive field—that is our differentiator. Demand for automotive displays is diversifying, and performance requirements are becoming more stringent. We must custom-design and provide a wide range of displays, from premium to mass-market lineups. TOVIS can respond quickly to customer needs and has internalized design capabilities for the components that make up displays. We are also steadily conducting research and development (R&D) to build the technological capability to propose solutions in line with automotive display market trends. For example, software functions are expected to be integrated into automotive displays as well, and we possess the software technology for that."
— What is the background to the spin-off?
"We had a strong desire to have our corporate value properly assessed by the market. TOVIS has two pillars: the casino monitor division and the automotive display division. But there is almost no overlap between the casino monitor and automotive display markets. Everything from product development to sales strategies differs. Casino monitors begin with developing products that can generate demand from casino operators, while the automotive display business develops products and moves to mass production through long-term partnerships with customers. In the automotive display market, it takes more than three years for product development to translate into revenue."
— What are your goals after the spin-off?
"The spin-off will not bring major changes from a business standpoint. First, we will focus on stable execution so we can deliver on orders on time, and we will concentrate on strengthening our technological capabilities to meet demand in the automotive display market. If the current trend continues, I believe we can surpass 1 trillion won in revenue within a few years.
We are currently expanding supply of automotive displays to Korea, North America, and Europe, and we plan to enter the Japanese market as well. The Japanese market has high entry barriers, but once relationships are formed, they tend to last a long time. When we were in the mobile display business, we supplied displays to Sony and Kyocera. Based on that experience, we plan to knock on the door of the Japanese market."