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China to compete head-on with Taiwan panel makers

Posted: 04 Sep 2012 ?? ?Print Version ?Bookmark and Share

Keywords:TrendForce? panel maker? Chinese TV brand? BOE? CSOT?

According to a recent report from WitsView, the display research arm of TrendForce, the shipping MoM growth rate of six major Chinese TV brands in July reached 20 percent to 3.772 million units, while the shipping in August is anticipated to grow by 11 percent. On the other hand, the total purchase volume of TV panels for the six major brands in July was 3.955 million units with monthly growth of 10.9 percent and continuous growth is expected in August with a MoM up to 16 percent, added the market research firm.

The director of WitsView Burrell Liu said the main reasons that stimulated the growth of shipping volume and panel purchase in July for the six major Chinese brands are: 1) the new government policy that became effective on June 1st that promotes energy saving products that benefit the general public, resulting in the increase in new models inventory preparation that targets the holiday period between the Moon Festival and October 1st National Day, while August and September are also peak seasons in terms of exports; 2) The panel price in Q3 remains stable and even shows a slight growth, which triggers motivation for fore planning of inventory.

The shipping infiltration rate of the LED TV produced by the six major brands in July was as high as 74.6 percent with the overall infiltration rate reaching 70.5 percent for the months between January-July. It is estimated that the annual infiltration rate for the six major Chinese brands will achieve 80 percent. The shipping volume of New Chimei in July still leads the way with a 27.1 percent market occupancy rate; AUO settles at second with 20.2 percent; while LG and Samsung trailing behind at third and fourth place with 14.6 percent and 13.1 percent, respectively.

TCL Smart TV name

Figure 1: Ratio of Panel Purchase for the Top 6 Major Chinese TV Manufacturers
Source: WitsView.

One thing worth mentioning is the shipping volume of BOE and CSOT in July, which increased by 11.6 percent and 8.9 percent. Both BOE and CSOT relies on its domestic advantages as panel manufacturers and its market occupancy rate in Q1 was 5.6 percent and 4.5 percent, which gradually inclined to 8.6 percent and 8.7 percent in Q2. BOE and CSOT both succeeded in achieving the 1 million units shipping milestone and both benefit from Chinese domestic brand manufacturers and even from the two major Korean manufacturers. The estimated shipping volume of CSOT in August is 1.3 million units, of which over 700K and more are for the six major Chinese brands and its shipping to Samsung increased to about 300K. The overall shipping volume of TV panels in September is estimated to reach 1.4 million units and will jump ahead to become the head of the Chinese LCD panel supply chain. On a side note, its shipping of 32in panel to the six major brands has become No. 1 starting from April. It has also aggressively engaged in the development of 55in and 110in high resolution (4K2K) panels, it is truly a company that cannot be ignored.

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