Top 10 monitor SIs’ shipments grew by 7.5% MoM in January

 

       According to WitsView’s global monitor SI shipment survey, shipments from the Top 10 SIs reached 14.84 million units in Jan11. In line with WitsView’s previous projections, the monthly increase reached 7.5%. As January marked the new starting year for most brand vendors, coupled by the end of the year-end inventory accounting pressure, brand vendors were more aggressive in replenishing their inventory and preparing for the possible labor and raw material shortage during the Feb11 Chinese Lunar New Year. Looking into Mar11 and Apr11, WitsView expects as the labor and raw material shortfall eases, the output from SIs will return to normal. The monthly growth rate is expected to reach between 25~30%. As for Apr11, WitsView believes the monthly performance will serve as a key signal in gauging the market fundamentals of global markets. Amid the current uncertainness, brand vendors are maintaining a cautious stance in preventing an inventory buildup and a repeat of clearing away the excess stock during the hot season. Based on current projections, WitsView expects shipments to fall slightly by 5~8% MoM in Apr11.

 

      Company-wise, after scaling back production in adjusting the year-end inventory, Samsung and LGE, who both have in-house manufacturing facilities, resumed normal production in the start of the new year. Their shipments respectively grew by 43.7% and 17.4% MoM in Jan11. Evident growth was also seen for BOE-VT, as some of the shipments that were originally scheduled for Dec10 were delayed to Jan11. This was attributed to a delay in the delivery time of some components during Dec10. Therefore, Its shipments grew by 31.6%MoM. Separately, spurred by its strong own-brand shipments and brisk orders from downstream clients, TPV’s shipment volume continued to reach new highs. In Jan11, its monthly shipments climbed by 6.9% MoM. By contrast, impacted by a raw material shortage, Compal’s production output was unable to meet its clients’ demand. Its shipments slipped by 23.3% MoM. The shortage is currently expected to alleviate in Apr11. Finally, as Tatung was in a transition period between old and new orders, and the fact that the new orders are mostly for 2H11, its shipments slumped by 16.7% MoM.

 

Worldwide top 10 SI shipment by unit in Jan. 2011

Shipment Unit: K pcs

Source: WitsView, 2011/02


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