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Taiwan LCD TV OEMs see growth in Q3

Posted: 25 Aug 2011 ?? ?Print Version ?Bookmark and Share

Keywords:LCD TV? TV shipment? TV OEM?

Demand for global LCD TV dropped to 201每203 million due to weaker demand. In Q2, brand shipment declined 2 percent compared to Q1. However, Q2 shipment of Taiwan's LCD TV OEM significantly grew by 7.3 percent, according to WitsView, a research arm of TrendForce Corp.

Beginning 2008, Taiwan's OEM ratio of LCD TV gradually grew from 15.7 percent to the estimated 23每25 percent (a volume about 47每49 million) for 2011 worldwide LCD TV, stated Burrell Liu, research associate of WitsView. According to the worldwide average data, one out of every four LCD TVs was made by Taiwan's OEMs. The gradual growth of Taiwan's OEM LCD TV in overall worldwide demand also demonstrates that it is a future trend for brands to outsource LCD TV. Due to their quality, services, and competitive and cost advantages, Taiwan's OEMs will remain an important option for the international brands during this economic downturn.

LCD TV share ratio

WitsView pointed out that Hon Hai Group purchased Sony's TV assembly plants in Mexico and Slovakia (capacity around 15每20 million) last year. Compal also purchased Toshiba's plant in Mexico (capacity around three to five million) in the middle of this year. In addition, Hitachi and other brands also intend to release orders to Taiwan's OEMs. These facts demonstrate that the Taiwan's OEMs still possess advantages and growth momentum.

Chimei's TV OEM unit (formerly Innolux) was formally incorporated into the Hon Hai Group in July, significantly increasing overall market share as a result.嚙瘢n H1, TPV ranked first with a market share of 31 percent. TPV finalized its contract details with Philips TV brand, securing the number one OEM position in 2011 worldwide.

Taiwan LCD TV

After merging Chimei's TV OEM, Hon Hai quickly rose to the number two spot in worldwide OEM (also number two in Taiwan).嚙瘩espite weak orders from Sony this year, their momentum after the merger, vertical integration synergies and the close partnership in brand strategy (Sony/Sharp/Vizio), they remain a respectable and formidable competitor among OEMs.

Also worth noting was Wistron, although also affected by the weak demand from Sony, its market share ranked third in Taiwan at 17 percent. Despite ranking fourth, Compal should have strong growth potential after finalizing the details of cooperation with Toshiba. Amtran, affected by the decline of Vizio's North American market share, its overall OEM volume only had a nine percent ratio in Taiwan. Close observation is necessary to determine whether the peak orders from Vizio will reappear in Q4. Even with only a six percent ratio, Unihan's long-term growth power should not be overlooked, in particular its strength as an ODM and the fact that it has opened up access to European brands. On a QoQ overall basis in Q2, Unihan had the highest growth of 36 percent, followed by Hon Hai Group's 18 percent and Wistron's 17 percent. In addition, the overall volume of Taiwan's TV OEMs falls between 47每49 million this year.

LCD share

According to WitsView, there will be a 12每15 percent growth of LCD TV brands in Q3 with contributing factors such as lead-time and inventory reduction. Taiwan's TV OEMs will have an estimated 6 to 9 percent growth in Q3. With panel supply being greater than demand, the brand and OEMs' shipment growth are not helping the panel price hike. However, it may be good news to the current supply and demand imbalance.

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