Wu: Most TV manufacturers have component inventories ranging from three weeks to six weeks. If a war breaks out, but is limited to the [Asia-Pacific] region, the chances of disruptions in component supply will be slim.
Taking flat panels as an example, a war, if it did happen, would only cut some panel supplies and boost panel prices.
However, there will be no supply crunch, since there are many panel suppliers around the world.
TT: Since LCD panels account for a major part of Amtran’s raw material costs, will you make any changes to your panel purchasing strategy this year?
Amtran chief financial officer Scottie Chiu (邱裕平): We are diversifying our panel suppliers this year. South Korea’s LG Display Co as well as Taiwan’s two biggest panel makers, Innolux Corp (群創) and AU Optronics Corp (友達), have been our main suppliers in previous years.
However, we are considering buying LCD panels from Sharp Corp in the second half of the year as the weak yen will help us reduce costs. This would be the first time we source panels from Sharp.
Besides, we are also thinking about increasing orders of 32-inch LCD panels on China’s two biggest panel makers [BOE Technology Group Co (京東方) and China Star Optoelectronics Technology Co (華星)], given their lower prices.