The global penetration rate of LCD TVs with ultra-high-definition, or 4K, screens is expected to rise to about 13.3 percent next year, which would be a twofold increase from this year’s 6.2 percent, Taipei-based industry watcher the Market Intelligence and Consulting Institute (MIC, 資策會產業情報研究所) said on Friday.
Total shipments of 4K TVs this year increased by seven-and-a-half-times to 12,920 units from last year’s 1,705 units, thanks to strong sales of 48-inch or bigger ultra-high-resolution flat-screen TVs, MIC director Chris Hung (洪春暉) told a news conference on Friday.
“I foresee that more affordable large 4K TVs will be launched in the global market next year, which would double the shipments of 4K flat-screen TVs to 28,359 units from this year,” Hung said.
He said that since 32-inch flat-panel TVs have a narrower gross margin, many panel makers have shifted their focus to producing larger panels and raising marketing efforts on large TVs.
“The sales for 40-inch or above LCD TVs will account for 55 percent of global panel shipments next year, up 6 percentage points from this year’s 49 percent,” Hung said, citing the MIC forecast.
Hung said the main growth driver for emerging markets, excluding China, would still be 32-inch or smaller LCD TVs, because of lower consumer purchasing power in emerging markets.
MIC forecast that LCD TVs of less than 34 inches would account for 44.1 percent of global shipments next year, down slightly from this year’s 46.6 percent due to the increasing demand for larger TVs.
Hung said the MIC is optimistic about the outlook for Taiwanese panel makers for the first half of next year, even though China is developing its own flat-panel industry.
“So far, Taiwanese panel makers’ orders are good and rising demand for larger panels should also help Taiwanese companies’ performance,” Hung said, adding that supply and demand in the flat-panel industry is expected to be stable in the first half of next year.
However, Hung said that whether robust demand would continue and if the Chinese market would have excess capacity are the main uncertainties for the industry in the second half next year.
Separately, MIC PC industry consultant Charles Chou (周士雄) said he foresees affordable notebooks becoming the key product supporting the PC industry next year, citing positive market reactions to Google Inc’s Chromebook and Asustek Computer Inc’s (華碩) EeeBook X251.
“Overall, the PC industry will be flat or even decline next year, except affordable notebooks may drive the sales in educational markets, but companies who have been receiving subsidies from Intel Corp for their affordable notebooks would encounter cost down issues once Intel cancel the subsidies,” Chou said.
UNCERTAINTY: Innolux activated a stringent supply chain management mechanism, as it did during the COVID-19 pandemic, to ensure optimal inventory levels for customers Flat-panel display makers AUO Corp (友達) and Innolux Corp (群創) yesterday said that about 12 to 20 percent of their display business is at risk of potential US tariffs and that they would relocate production or shipment destinations to mitigate the levies’ effects. US tariffs would have a direct impact of US$200 million on AUO’s revenue, company chairman Paul Peng (彭雙浪) told reporters on the sidelines of the Touch Taiwan trade show in Taipei yesterday. That would make up about 12 percent of the company’s overall revenue. To cope with the tariff uncertainty, AUO plans to allocate its production to manufacturing facilities in
Taiwan will prioritize the development of silicon photonics by taking advantage of its strength in the semiconductor industry to build another shield to protect the local economy, National Development Council (NDC) Minister Paul Liu (劉鏡清) said yesterday. Speaking at a meeting of the legislature’s Economics Committee, Liu said Taiwan already has the artificial intelligence (AI) industry as a shield, after the semiconductor industry, to safeguard the country, and is looking at new unique fields to build more economic shields. While Taiwan will further strengthen its existing shields, over the longer term, the country is determined to focus on such potential segments as
TAKING STOCK: A Taiwanese cookware firm in Vietnam urged customers to assess inventory or place orders early so shipments can reach the US while tariffs are paused Taiwanese businesses in Vietnam are exploring alternatives after the White House imposed a 46 percent import duty on Vietnamese goods, following US President Donald Trump’s announcement of “reciprocal” tariffs on the US’ trading partners. Lo Shih-liang (羅世良), chairman of Brico Industry Co (裕茂工業), a Taiwanese company that manufactures cast iron cookware and stove components in Vietnam, said that more than 40 percent of his business was tied to the US market, describing the constant US policy shifts as an emotional roller coaster. “I work during the day and stay up all night watching the news. I’ve been following US news until 3am
COLLABORATION: Given Taiwan’s key position in global supply chains, the US firm is discussing strategies with local partners and clients to deal with global uncertainties Advanced Micro Devices Inc (AMD) yesterday said it is meeting with local ecosystem partners, including Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), to discuss strategies, including long-term manufacturing, to navigate uncertainties such as US tariffs, as Taiwan occupies an important position in global supply chains. AMD chief executive officer Lisa Su (蘇姿丰) told reporters that Taiwan is an important part of the chip designer’s ecosystem and she is discussing with partners and customers in Taiwan to forge strong collaborations on different areas during this critical period. AMD has just become the first artificial-intelligence (AI) server chip customer of TSMC to utilize its advanced
RSS