Worldwide top ten SIs rose by 3.1% MoM in November

Based on WitsView’s latest survey, shipments from the global top ten SIs continued to grow by 3.1% MoM to 14.5M units in November, which mainly attributed to the following – firstly, small-sized LCD monitor panel prices posted an uptrend in 1HNov, so brand vendors restocked even more aggressively under the expectation of an upside in prices; secondly, some brand vendors restocked in advance for the potential demand during the Chinese New Year (CNY) holiday since the upcoming CNY holiday falls in the beginning of February 2011, leading to that the labor and material shortage problems which are expected to take place around that period may emerge early. Looking into December, since monitor panel prices did not continue to increase and turned stable instead, brand vendors decided to take a wait-and-see attitude toward restocking. However, several brand vendors have started the product pull-in. If the end-market demand is not as strong in December, the shipment momentum may not continue because of the excess inventory. In addition, the fiscal year ends in December among some brand vendors who is expected to slow down their procurement under the pressure of inventory count. Hence, WitsView estimates that shipments from the global top ten SIs may fall in December, whereas it may grow by 2~5% in January because of the aggressive inventory replenishment in the beginning of a new calendar year.

 

Among individual vendors in November, thanks to the early restocking for the CNY holiday from China customers, Innolux’s shipments rose by 13.2% MoM; Compal’s shipments grew by 13% MoM because of the increasing orders from its Japan customers; for Tatung, its new orders from the US customers were gradually under mass production, so shipments rose by 10.8% MoM. On the contrary, Samsung began to adjust its own capacity due to the approaching of the fiscal year-end. Therefore, its shipments dropped by 15.2% MoM.

 

Worldwide top 10 SI shipment by unit in Nov. 2010

 

Shipment Unit: K pcs

Source: WitsView, 2010/12

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