Taiwanese TV contract manufacturers are expected to get a boon in orders as one-in-three TVs shipped this year will be outsourced to contract makers, a report said.
Market researcher DisplayBank said last week that as many as 29 percent of 59.5 million LCD TVs shipped last year were outsourced to contract makers, with major orders going to Taiwanese companies.
For this year, the outsourcing ratio is expected to hit 32.5 percent, translating to one-in-three TVs shipped this year outsourced to manufacturers, instead of brand-name companies producing TVs in-house.
The ratio is projected to further climb to 47 percent in 2015, it said.
More brand-name vendors — including Sony Corp, Panasonic Corp and Sharp Corp — are opting to outsource their TV production to cut the cost of research and development and component and material sourcing, the statement said.
This is particularly true of Sony, which has downsized from 12 TV manufacturing plants to four, according to DisplayBank.
Among the TV manufacturers expected to enjoy robust orders thanks to the aggressive move toward outsourcing are TPV Technology Ltd (冠捷) and Foxconn (富士康) (both from Taiwan), Vestel Group from Turkey, Taiwan’s Wistron Corp (緯創), Compal Electronics Inc (仁寶電腦) and Amtran Technology Co (瑞軒科技), the world’s top six makers in that order.
Last year, Wistron and Foxconn saw the highest growth in their LCD TV shipments, the market researcher said.
Wistron produced a total of 7.1 million flat-panel TVs last year, showing the strongest year-on-year increase at 82 percent, the report said.
Foxconn, the trade name of Hon Hai Group (鴻海集團), the world’s largest electronics contract maker, posted the second-highest growth, at 46 percent, with 8.5 million TVs.
Vestel shipped 9 percent more TVs last year, at 7.6 million units.
The three other companies, however, saw their shipments decline from 2010.
Market leader TPV shipped 13.7 million units, down 10 percent year-on-year, while Compal shipped 1 percent less at 5.4 million units. Amtran saw shipments plunge by 15 percent last year to 3.7 million units.
“TPV’s rapport with its clients derived from its earlier experience in monitor contract production helped it lead in overall shipments last year,” the statement said.
Foxconn, on the other hand, has started to win orders with its strong integration capability in component sourcing, while Vestel enjoyed strong momentum in European orders thanks its location, DisplayBank said.
In November last year, WitsView, an LCD research arm of Taiwan’s TrendForce Corp (集邦科技), forecast Taiwanese companies would ship a total of 45 million flat-panel TVs last year, or 22.4 percent of global production.
That market share is projected to expand to between 27 percent and 28 percent this year assuming production of between 60 million and 62 million TVs, the Taipei research firm said.