A delegation of Chinese TV vendors has postponed its annual visit to Taiwan, in a move some have suggested is politically motivated, with president-elect Tsai Ing-wen’s (蔡英文) administration scheduled to take office tomorrow.
The delegation has come to Taiwan for the annual Computex Taipei trade show — held in May or June — for the past seven years to review their panel orders with local suppliers and exchange views on new LCD technologies.
This year’s delegation was to be led again by China Video Industry Association deputy director Bai Weimin (白為民), with representatives from major electronics companies such as TCL Corp and Hisense Electric Co (海信).
However, Bai has rescheduled her trip to August or September as some major Chinese TV makers are reshuffling their top executives, a Taiwan External Trade Development Council (TAITRA, 貿協) official said by telephone yesterday.
Chinese TV makers purchased an average US$4 billion of TV panels every year over the past few years, according to TAITRA, which helps arrange the delegations’ trips to Taiwan.
TAITRA said Chinese TV makers tend to buy large TV panels, such as 40-inch or 42-inch panels, and higher-resolution 4K panels from Taiwanese panel manufacturers as Chinese LCD panel makers mostly focus on making smaller-sized and less advanced TV panels.
Innolux Corp (群創), which is the biggest panel supplier to Chinese TV makers, yesterday downplayed the potential impact of the delayed visit, saying that the company has formed strong partnerships with Chinese clients and managed to diversify its customer base.
As news of Bai’s postponement came just ahead of tomorrow’s handover of power, it has triggered speculation that political considerations were behind her decision.
However, TAITRA dismissed the speculation as unfou nded and said the delay should have a limited impact on Chinese panel purchases.
Eric Chiou (邱宇彬), a senior research director of WitsView, a division of TrendForce Corp (集邦科技), said that Taiwan’s importance to Chinese TV makers is declining, as the nation now supplies about 30 percent of the panels used, down from 30 percent to 40 percent in previous years.
Chiou attributed the decline to the rise of Chinese LCD panel makers.
In the past, Chinese panel manufacturers BOE Technology Group (京東方) and China Star Optoelectronics Technology Co (華星光電) were only able to produce 32-inch TV panels, but now they have improved their technologies and can supply 43-inch and 55-inch TV panels, he said.
As the delegation led by Bai is to mostly be comprised of representatives from established Chinese TV makers — which are losing market share and influence to their domestic rivals, including their Xiaomi Corp (小米) and Letv.com (樂視網), it is doubtful if Bai can maintain the leading position of the TV makers represented in her delegation, Chiou said.
In addition, the delegation’s role is diminishing as Chinese TV vendors are adjusting their panel procurement policy by forming strategic alliances with panel suppliers in order to fend off intensifying competition, Chiou said.
TCL, the No. 2 TV brand in China, set an example by deepening its partnership with AU Optronics Corp (友達光電), he said.
The delegation’s visit to Taiwan is not directly linked to orders, Chiou said.
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