Top ten SI shipments fell short of expectations due to labor shortage in China

 In January 2010, shipments of top ten SIs grew by 4.4% MoM to 13.88 million units, according to WitsView’s global LCD monitor SI shipment survey. As Chinese New Year is around the corner, with fewer working days and rising panel price, demand from restocking of products was reflected early. However, SIs’ actual shipment fell short of expectations due to the delayed delivery of assembly components (such as power IC and power board) recently, as well as labor shortage in China. In addition, the performance of Chinese New Year holiday sales in February will affect the subsequent supply and demand of the overall market. On the other hand, after Chinese New Year holiday ends, there will be another period of labor shortage during late February. Even with new recruitment and training processes, it could take up to mid-March, at the earliest, to get the fabs back in full operation. As a result, actual SI shipments will be affected to a certain extent. For this reason, top ten SI shipments are forecast to reduce by 7.6% MoM in February.

As for the dynamics of individual SIs in January: most SIs’ shipments continued to grow due to their customers’ demand from restocking in the start of a new year. Among them, shipments of Korea’s Samsung and LGE surged 32.5% and 21.1% respectively, posting the top two biggest increases compared to the figure in December. This is because the two Korean SIs’ shipments reduced substantially in December due to inventory clearing. On the other hand, due to TPV’s effort to achieve their shipment target in 4Q09, the base volume of its shipments increased; hence, despite a MoM decline of 8.7% in January, its shipments are quite outstanding.

 

Worldwide top 10 SI shipment by unit in Jan 2010

Shipment Unit: K pcs

Source: WitsView, 2010/2

 


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