Ostin Technology Group Co Ltd's Comment on Supply Chain
The company sources key components and raw materials for its TFT-LCD display module products, including TFT panels, polarizers, backlight units, and driver integrated circuits, from external suppliers. It does not typically enter into binding master supply agreements but provides quarterly forecasts to suppliers. Firm purchase orders are generally issued two weeks prior to delivery, except for driver integrated circuits, which are ordered six to ten weeks in advance. To reduce costs and dependence on single suppliers, the company develops compatible components but sources key materials from a limited group to ensure quality and timely supply. The company prioritizes suppliers based in Japan and Korea to minimize logistics costs and conducts periodic evaluations based on quality, cost, delivery, service, and financial health. Inventory is maintained for approximately 30 days, with longer periods for driver integrated circuits and polarizers. Two suppliers accounted for significant portions of raw material purchases in recent years: 36.8% and 6.3% in 2025; 43.2% and 10.9% in 2024; and 42.6% and 6.8% in 2023. Equipment is primarily purchased from overseas manufacturers, mainly Japanese, but recently a portion has been substituted with Chinese suppliers to reduce costs. Currently, approximately 100% of equipment is purchased from Chinese suppliers.
Ostin Technology Group Co Ltd's Comment on Supply Chain
The company sources key components and raw materials for its TFT-LCD display module products, including TFT panels, polarizers, backlight units, and driver integrated circuits, from external suppliers. It does not typically enter into binding master supply agreements but provides quarterly forecasts to suppliers. Firm purchase orders are generally issued two weeks prior to delivery, except for driver integrated circuits, which are ordered six to ten weeks in advance. To reduce costs and dependence on single suppliers, the company develops compatible components but sources key materials from a limited group to ensure quality and timely supply. The company prioritizes suppliers based in Japan and Korea to minimize logistics costs and conducts periodic evaluations based on quality, cost, delivery, service, and financial health. Inventory is maintained for approximately 30 days, with longer periods for driver integrated circuits and polarizers. Two suppliers accounted for significant portions of raw material purchases in recent years: 36.8% and 6.3% in 2025; 43.2% and 10.9% in 2024; and 42.6% and 6.8% in 2023. Equipment is primarily purchased from overseas manufacturers, mainly Japanese, but recently a portion has been substituted with Chinese suppliers to reduce costs. Currently, approximately 100% of equipment is purchased from Chinese suppliers.
Sources:
Ostin Technology Group Co Ltd's official press releases and regulatory filings; CSIMarket.com's supply-chain research; and the financial filings and press releases of other companies cited in this report.
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