TrendForce: Taiwanese LCD TV SI makers seeking for transformation

According to the shipment survey of WitsView, the display research division of the global market intelligence provider TrendForce, the 2013 Taiwanese LCD TV SI makers’ shipment attained 41-43 million units, surging 8-14% from 37.8 million units in 2012. The Taiwanese LCD TV SI makers’ Q1 total shipment reached 7.47 million units, declining 35% QoQ and dropping 2% from the same period last year. (table 1.)

Table 1. 2013 Taiwanese LCD TV SI makers’ business plan

Source：WitsView

WitsView’s research director Burrell Liu indicates the reasons for the Taiwanese LCD TV SI makers’ shipment declines are listed as follows: 1. brands’ volumetric restocking in Q4 last year; 2. Japanese brand clients’ global market share remained soft; 3. brands’ procurement was lower than expected for May 1st in China and outsourced orders shrunk. As working days in Q1 were shortened and the shipment basis period was lower in addition to the lowered inventory in clients’ hands, the Taiwanese LCD TV SI makers’ Q2 shipment is projected to grow 25-30% QoQ and 10-15% from the same period last year.

Japanese LCD TV brands’ average global market share had topped 30% before 2012, but it dropped dramatically to 21.8% in 2012, dragging the sales of Taiwanese SI makers, who mainly depend on Japanese brands, to tumble 14.4% YoY. SI makers are forced to rethink the business planning and new strategic direction, for example, Compal is said to develop the BLU business with Kenmos to ensure its advantages on vertical integration, Wistron not only works closely with Haier but starts to ship Xiaomi TV, and Briview actively expands its BLU assembly business.
    
TPV has been actively fighting for the brand control of PHILIPS since 2011, and PHILIPS accounts for a growing proportion of the Taiwanese SI makers’ total shipment, from 9.2% in 2011 and 14.8% in 2012 to 20% this year. Chinese brand clients’ proportion surges from 5% in 2011 to 9.2% this year. Contrarily, Japanese brands’ proportion of the total Taiwanese SI makers’ shipments declines expectedly to 33-34% this year from 70-80% in the years prior to 2011. Taiwan LCD TV brand Vizio releases all its orders to Taiwanese SI makers and accounts for 14-15% of the total Taiwanese SI shipment. (figure 1.)

Figure 1. 2011-13 LCD TV brands’ proportions to Taiwanese SI makers’ business plan

Source：WitsView