Taiwanese Q2 TV SI Shipment Surges amid Challenges from the Rise of Chinese TV SI Makers

Taiwanese LCD TV SI makers’ shipment reached 7.61 M units in Q1 2014, declining by 25.9% QoQ and growing by 1.9% YoY, exhibiting stronger than expected despite of the shipment declines, based on the latest survey by WitsView, the display research division of TrendForce.  

The elevated shipment was mainly attributed to the healthy inventory and the fact that brands are starting to release orders and to distribute goods in March. The Q2 shipment significantly hinges upon brands’ rising orders and sufficient panel supply in April. WitsView projects a Taiwanese LCD TV SI maker shipment of 10 M units for Q2, growing by 31.4% QoQ.

 “With the support of from the “appliance-going-to-countryside” policy and subsidy measures, the global share of LCD TV demand in China in 2013 reached 24%, says WitsView Research Director Burrell Liu. “It propels the emergence of local LCD TV SI makers in China, which in turn establishment of sale outlets for the domestic white-box makers and the overseas orders.”

Chinese LCD TV SI maker leaders - HKC, BMTC and Kangguan - all project to produce 4.5M-5.5M units this year.  In particular, as the world’s No.7 LCD monitor SI maker, HKC produces 4.5M units per year, completely unaffected by the global LCD demand bottleneck. The top Chinese SI makers’ share remained around 4-6% before 2011, rose to 9-10% in 2012, and officially reached 12% in 2013. It is projected to stay around 12-13% this year.

On the other hand, Taiwan-based LCD TV makers’ share has fallen from 22.1% in 2011 to 17.6% in 2013. Despite maintaining a flat shipment or slight growth this year, they are still projected to lose the earlier advantages. “Taiwanese LCD TV SI makers’ order is projected to reach 37-38 M units in 2014, growing by 4-6% YoY. However, whether or not Taiwanese SI makers would benefit from the PDP replacement sales and demand for mid-and small-sized TVs remains to be seen,” indicates Liu.