TrendForce: Taiwan TV SI Shipments Dropped Constantly, Brands’ Strategy Adjustment Becomes Key in 2014

Based on the survey of Taiwanese LCD TV SI makers’ shipment by WitsView, the display research division of the global intelligence provider TrendForce, Taiwanese SI makers’ LCD TV shipment for Q4 2013 surged 17.5% QoQ to 10.28 million units, dipping 6.4% YoY. The full-year shipment was weaker than expected, only 35.85 million units, declining 5.4% YoY. Due to the traditional slow season in Q1, the SI shipment drop is comparable to brands’ shipment decline, further trimming by 23-25%.   

“Because of the sluggish global economy in 2013, some brands’ shipments declined sharply and dragged down SI makers’ room for survival, which was the main factor that led to the lower-than-expected Taiwanese LCD TV SI makers’ shipment,” says WitsView research director Burrell Liu. “In addition, brands tended to be conservative on outsourcing orders, which have been staying around 30% for three consecutive years. Only TPV and Hon-Hai’s TV SI shipments enjoyed 5.2% and 19.2% growth, and the remaining SI makers showed shipment declines.”    

Liu indicates brands’ strategies caused large volatility in SI makers’ shipments. Taking Sony for instance, the Japanese brand announced to split its TV unit from July as it controls a dipping share of Taiwanese SI makers’ orders, from previous 50%-55% to 35% in this year, and the SI model is shifted from ODM to OEM-oriented and focuses on high-end large sizes and the 32”-and-below for the emerging markets.

Taiwanese LCD TV SI makers’ shipment for 2014 is expected to reach 36-39 million units (see table 1), rising 5-6% YoY. Due to the SI shipments and performances deeply influenced by brands’ demand and strategies, SI makers enforce the vertical integration ability and enhance the cooperation with brands in an attempt to reverse the drops and boost sales.

Graph 1. 2014 Taiwan LCD TV SI Shipment BP (sell-in)