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Philips to shift entire LCD monitor biz to Taiwan

...while supplies are not as tight as thought

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The Taiwanese press is today reporting that Dutch firm Philips will shift its entire LCD monitor production to the island. According to the organisers of the Computex trade show, Philips will produce half a million LCD monitors in this year, representing around 12 per cent of global volume, but will make a million LCD monitors next year. Local manufacturers of panels will provide 40 per cent of Philips' volume, next year, according to the same source. Back in July, Philips struck a deal with South Korean firm LG Electronics, in which it took a 50 per cent share in its LCD business, an investment amounting to over $1.6 billion. There appears, therefore, something of a logical inconsistency in these positions. But Bob Raikes, director of analysis at Meko, which specialises in this segment of the market, said that there was a difference between panel production and complete monitor production. He said: "Philips monitors is already based in Taiwan, and this refers to the production of cased panels, with power supplies and the like." While Philips has a joint venture in Japan, production there was not high. Raikes added that while there was a shortage of LCD panels and monitors, and supply was somewhat tight, the situation was "not as bad as some manufacturers would like us to believe". He added that PC notebook manufacturers, rather than single sourcing, were relying on multiple manufacturers to supply their demands. ®

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