Hon Hai Group to Ship 11 Million LCD TVs in 2010

Taiwan-based Hon Hai Group is expected to become the world`s largest LCD TV contract producer in 2010 by shipping about 11 million sets, according to Chinese-language economic daily newspaper Economic Daily News (EDN).

The EDN report said that Hon Hai and its subsidiary Innolux Display Corp monopolize orders from the world`s top three LCD TV vendors, including Sony, Samsung and LG. Orders from Sony alone in 2010 is estimated to be about four million sets.

Statistics compiled by DisplaySearch, the worldwide leader in display market research and consulting, showed that Hon Hai and Innolux are expected to ship only about one million LCD TVs in 2009, which is to grow 11 times in 2010 to reach 11 million sets, excluding potential orders being negotiated with big customers as Sharp and Philips.

David Hsieh, Vice President of DisplaySearch Greater China, pointed out that in addition to cost advantage, Taiwanese contract suppliers have to have strong support from panel supplies to win big-ticket orders from major international brands.

After the recent merger between Innolux and Chi Mei Optoelectronics Corp (CMO), the second largest thin film transistor-liquid crystal display (TFT-LCD) panel maker in Taiwan, is expected to change not only the scenario in the local TFT-LCD industry but also the whole flat panel display (FPD) line`s business model. The merger implies the gigantic EMS (electronics manufacturing services) provider Hon Hai`s aggressive vertical integration toward upstream supplier with sufficient assembly capacity and order-winning ability, as well as major international LCD TV brands' increasing willingness to place orders with assemblers with in-house panel manufacturing.

Confronting fierce competition from Hon Hai, AU Optronics Corp (AUO), the largest TFT-LCD panel manufacturer in Taiwan, is also aggressively trying to go downstream into TV-assembly, and expects to ship about 1.5 million LCD TVs next year.

Source: CENS