TrendForce Solar Alert: Taiwan-Based SI Makers Must Find New Silk Road
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July 29, 2013 (Investorideas.com renewable energy stocks newswire) According to the shipment survey by WitsView, the display research division of the global market intelligence provider TrendForce, Taiwanese LCD TV SI makers' Q2 shipment grew 12% from the previous quarter to 8.35 million units. The shipment forecast for the entire 2013 is revised down to 36-38 million units (figure.1), showing no growth or even a decline from the 2012 shipment of 37.8 million units, and the market share projection is down to 18% for 2013 from 22.1% for 2011, and this is the second consecutive annual decline for Taiwanese LCD TV SI makers.
Besides, the LCD monitor SI industry sees shipment drops for three consecutive years, and the global monitor shipment for this year, of which Taiwanese SI makers control 65%, is projected to slide to 140-141 million units, dropping 9% YoY. As for the NB ODM business, Taiwan accounts for as much as 95%-98% of the global shipment, which is estimated at around 168 million units for this year, declining 10% from last year and seeing declines for two consecutive years.
WitsView research director Burrell Liu indicates the reasons for the consecutive declines in Taiwan's LCD TV SI industry: 1. Sluggish macro economy leads to decreasing market demands, and the 2013 global LCD TV shipment may stay flat as that for 2012 or is lower than last year's 206.5 million units, showing the first historical drop; 2. China's TV subsidy policy ends and the advance consumption in the first half of the year would damp that in the second half; 3. Taiwan is excessively depended on Japanese clients, seeing an imbalanced structure; 4. In lack of their own brands' outlets, Taiwanese makers are easily influenced by the market fluctuations; 5. Brands and retail channels are busy with their business in the low-profit era, pressing revenue and survival room for SI makers.
WitsView indicates the outlook for LCD TV SI makers is actually very dim, and SI makers are struggling. In view of the developments in the TV industry, the emergence of Chinese brands and SI makers are realized with the help of official subsidy policies that drive up domestic demands and make up the losses in export orders, while Taiwanese makers are losing edges in the reshuffle. Hon-Hai aggressively deploys the business” eight displays and one cloud”, integrates its panel business, and allies with LETV and telecom companies, which shows making breakthroughs in the industry is inevitable, no matter how the result is.
Another example is that Briview has combined AUO's advantages on panels and builds the new BMS business, broadening its own way, while the sales are weak for its peers. Japan's FUNAI not only cultivates in PHILIPS' TV selling business in North America, holding the exclusive dealership license, but works with the retailer Walmart to maintain the stably surging growth and market share. TPV, emerging from the passing CRT era, successfully secures its position as a SI leader in the industry in the micro-profit era on its precise transformation and the strategic partnership with PHILIPS' monitor and TV brands.
WitsView believes that the prosperity in Taiwan's electronics and technology ODM industry has already waned, and the industrial transformation examples in Japan, Korean, Europe, and the U.S. are worth rethinking. The government officials should strongly support the industrial adjustments, integrate resources, and boosts the competitiveness in the country's electronics industry.
TRENDFORCE is a global leading research institution providing market intelligence, in-depth analysis reports and consultant services on technology sector. Our company consists of 4 major research divisions---DRAMeXchange, WitsView, LEDinside and EnergyTrend which cover the DRAM, NAND Flash, PC, display ,LED and Green energy research sectors respectively. www.trendforce.com
In the year of 2000, the company started to deliver market intelligence services under the name of DRAMeXchange. This includes the latest industrial scenario, real-time spot trading prices, market trends, capital spending and wafer capacity trends, the impact of DRAM/flash memory products on the market, and other relevant PC industry information. www.DRAMeXchange.com
Established in the year 2004, WitsView, a subsidiary brand of TRENDFORCE, is composed of a team of TFT-LCD industry analysts covering the development and market trend of upstream components, mid stream panels and downstream system integrators and retailers. www.WitsView.com
In 2007, LEDinside, another subsidiary of TRENDFORCE , was launched and has become one of the most popular and distinguished information platform for the LED market. www.LEDinside.com
Green energy, also referred to as alternative energy, is the key to creating a clean future for the world. EnergyTrend, the latest research division of TRENDFORCE, is dedicated to deliver market intelligence of eco industry. The research scope includes renewable energy and its applications ( i.e. solar, battery & electric vehicles). www.energytrend.com
EnergyTrend laijiameng.cn is a comprehensive platform which includes participation, chain, Merchants, Entrepreneurship, trade and investment, it focus on Franchisees industry and provide the most accurate and reliable informations and brands of entrepreneurship, chain and participation, it also afford investment plans and service of brand promotion, investment information search, and Entrepreneurial.
EnergyTrend Founded in 2007 with headquarters in Shanghai, AVANTI is a professional market survey company that has been a research division of TrendForce since 2012. We offer traditional survey methods (CLT, FCG, IDI, CLT, etc.) as well as online surveys. Currently, our online panel covers China and Taiwan, with exposure to 6 million Chinese Internet users, which enables us to help our clients gain a deeper understanding of the Chinese market. Our clients represent global brands in industries like consumer products, cosmetics, consumer electronics, automobiles, finance, medicine, etc. www.chinarp.cn
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