Top 10 SI shipments grew by 3.8% MoM in December 2009

 

 

According to WitsView’s global LCD monitor SI shipment survey in December 2009, shipments of top ten SIs grew by 3.8% to 13.29 million units. Although December 2009 was a slow period for shipments, market demand grew due to gradual recovery in the global economy and the confirmation of the price increase in LCD monitor panels during 1Q10. Product pull-in and stocking-up from top ten SIs’ major clients spurred the steady growth in the overall shipments. As for market outlook in 1Q10: due to the Chinese New Year holiday and fewer working days in February, some orders will be shipped in advance in January. Hence, the overall market will continue to grow by 9.7%. While IT products do not follow seasonal sales fluctuations as that of TVs, the stock-up of LCD monitors since November 2009 still need to be cleared away through end-market demand. Therefore, after the Chinese New Year, the next crucial turning point for price and demand is expected in March, and it warrants close attention.

As for the dynamics of individual SIs: shipments of Samsung and LGE decreased by 23.8% and 21.3% MoM respectively, as both have their own factories and are therefore affected by the year-end inventory count. Due to delayed panel delivery, a portion of Greatwall’s shipment is deferred till January 2010, therefore its shipments in December declined by 6.5%. Shipments of all Taiwan-based SIs increased thanks to rising shipments of their customers. Among them, Jean’s shipments grew the most, up 115.4% MoM, due to successful panel delivery. This is followed by TPV with 25.9% MoM increase, as it was aiming to achieve the annual shipment target of over 40 million units.


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