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Double-Digit LCD TV Production Growth Expected: DisplaySearch

Santa Clara, Calif. – LCD
TV production will likely increase for some vendors, while Japanese factories
pull back due to the earthquake.

MarketWise – LCD Industry Dynamics report indicates that production among the
top 17 LCD TV brands grew 15 percent from February to March and will likely
grow an additional 6 percent month over month in April.

Chinese firms such as
TCL, Hisense, Skyworth and Changhong are targeted for double-digit growth for
the first quarter of 2011, while the major Japanese brands of Sharp, Panasonic,
Sony and Toshiba are planning on lower growth due to ongoing earthquake-related
issues and poor economic conditions, DisplaySearch said.

The report also found Samsung
is expected to produce about 3 million LCD TVs per month for the first half of
the year, with a slight uptick of 3.3 million in March. Sony will generate 1.9
million units per month for the March through June period. LG will raise its
production rate from 2.3 million units per month in March to 2.6 million units
by June.

China-based manufactures
will enter a peak production period in April in preparation for that country’s
May Labor Day shopping season.

The report also found:

  • LCD TV OEM makers planned to significantly
    increase their production and shipments in March. The top seven LCD TV OEM
    companies shipped 3.1 million units in February and are expected to ship 4.4
    million in April. For Q2 2011, they are targeting an average of 4.8 million
    units per month.

  • In February, LG Display replaced Chimei Innolux
    as the leader in LCD TV panel shipments to China TV makers.

  • Panel makers are cautious about utilization
    rates. The global average was 83 percent in March and is expected to be the
    same in April, before rising to 85 percent in May.

  • LCD TV panel shipments in February declined 4
    percent month over month and are estimated to increase 22 percent month over
    month in March. Shipments are expected to stay at similar levels in April and
    May, before seeing another increase in June.

Korean and Taiwanese panel makers have different
expectations for LCD TV panel shipments over the next few months. Korean makers
are aiming to increase, especially as they have implemented new Ti/Cu
processes; Taiwanese makers are planning to stay flat or grow slightly in Q2 2011.