Double-Digit LCD TV Production Growth Expected: DisplaySearch

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

DisplaySearch's 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.


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