Japanese TV Vendors to Raise Panel Outsourcing to Taiwan

Taipei, Nov. 14, 2012 (CENS)--New shipment mode of backlight module system (BMS) integration has been driving up Japanese TV brand's outsourcing rate, with Japanese customers planning to adopt new screen sizes to evade competition against Koreans also expected to increase Japanese orders for thin film transistor-liquid crystal display (TFT-LCD) in 2013, according to David Hsieh, vice president, DisplaySearch Greater China.

Hsieh pointed out that Taiwanese panel suppliers have successfully pushed different new-size products, winning strong support from both Japanese and second-class TV vendors. The vice president explained that adopting new-size TV panels could let Japanese TV vendors flexibly adjust product prices and evade underselling with Korean counterparts in the same-size segments.

Toshiba, for example, introduced new sizes such as 29-, 39-, 50- and 58-inch TVs, while Sony also plans to push 29- and 39-inch models.

Taiwanese suppliers are the major sources of new-size TV panels. Sharp purchased some 22% of its needed TV panels from Chimei Innolux Corp. this year, though the company also operates a panel factory. Sony purchased 24% and 13% of its needed TV panels from AU Optronics Corp. (AUO) and CMI, respectively, while downscaling purchases from Samsung of Korea to less than 50%. Toshiba procured some 33% from AUO and CMI, compared to Panasonic's 46%.

Hsieh added that Taiwanese suppliers pulled ahead Korean rivals to push 4K2K panels, forcing Samsung and LG Display to slow investment schedules in organic light-emit diode (OLED) panels.

In 2013, Hsieh forecast, Samsung's TV outsourcing rate is expected to rise to about 40% (almost in BMS mode), compared to Sony's 90% (60% in 2012) and Toshiba's 70%, to benefit Taiwanese contract assemblers the most.