Ad
Ad
Ad
Ad
Ad
Ad
Ad
Ad
Ad
Electronics Production |

EMS providers seeing great<br>opportunities in LCD business

The LCD panel industry are proving to be a major growth segment for EMS providers as the LCD panel makers tends to increase their outsourcing.

According to iSuppli EMS providers such as Celestica, Elcoteq, Flextronics, Hon Hai and Jabil, have invested significant resources in improving their competitive positions in the LCD-TV manufacturing industry as they are seing great opportunities in this segment. Original design manufacturers (ODMs) and the Electronics manufacturing services (EMS) providers, together will produce 61.8 million LCD-TVs in 2011, up from 12 million in 2006, says iSuppli. LCD-TV outsourcing generated $8.9 billion in revenue in 2006 and is projected to grow to $25.2 billion in 2011, rising at a compound annual growth rate (CAGR) of 23.2%. By 2011, contract manufacturers will produce more than one out of every three LCD-TVs made worldwide. ODMs and EMS providers have been lured to the LCD-TV market by its triple-digit increases in shipments during the last few years. LCD-TV unit shipments expanded by 103.9% in 2006 and will rise at a CAGR of 31.7% for the five-year period of 2006 through 2011. “The contract-manufacturing industry is playing an essential role in the development of the LCD-TV market," says Jeffrey Wu, analyst, EMS and ODM services for iSuppli. “ODM and EMS companies are enabling brand names to enter the market and compete, conducting the essential behind-the-scenes tasks like manufacturing and supply chain management", he adds. This huge revenue growth outlook has attracted the attention of a large number of Asian ODMs. There are more than 20 such ODMs serving LCD-TV OEMs, including global brands, regional brands and retail brands, making for a decentralized competitive landscape. EMS providers, on the other hand, are just beginning to penetrate the market. iSuppli estimates that from a final-assembly shipment perspective, of all LCD TVs outsourced in 2006, only 6.8% were produced by EMS providers, with the remainder made by ODMs.

Ad
Load more news
March 15 2024 2:25 pm V22.4.5-1
Ad
Ad