Taipei, Friday, March 31, 2017 02:42 (GMT+8)
showers
Taipei
17°C
Digitimes Insight: Rolling black-outs to hit Japan-based LCD TV vendors
Jessie Lin, DIGITIMES Research, Taipei [Wednesday 16 March 2011]

Production of Japan-based major LCD TV vendors such as Sony, Toshiba, Panasonic and Sharp will not be significantly affected by the 9.0 magnitude earthquake and tsunami that struck off the northeast coast of Japan on March 11, as their TV assembly plants are not located in the disaster areas. The four Japan-based vendors are expected to account for 35.6% of the global LCD TV market in 2011.

In terms of upstream component supply, Sony and Toshiba mainly adopt in-house image processing chips for their high-end models. Sony's production plant for image processing chip is located in Nagasaki, which was not significantly affected by the disaster. Meanwhile, Toshiba's image processing chip plant was more seriously damaged compared to its IC chip production plant.

Digitimes Research believes that with for mid-range to entry-level LCD TV models, which Japan vendors mainly outsource to overseas manufacturers, image processing chips will not be an issue.

For other components, the disaster will affect some supply of TAC and color filters. Liquid crystal supplier Chisso, which accounts for 20-30% of the global market, will see some of its shipments affected due to a fire at a nearby oil refinery plant. With Hitachi Chemical and Sony accounting for 90% of ACF supply worldwide, significant impact on the global LCD display industry is expected.

Overall, as Japan-based LCD TV vendors all run overseas production plants and will outsource over 70% of their production in 2011, Digitimes Research expects Japan vendors to shift more of their production to overseas plants or further increase outsourcing if the rolling black-outs hinder their production in Japan.

Tokyo Electric Power Company (TEPCO) started rolling black-outs on March 15 due to power shortages in the wake of the disaster. TEPCO has separated Tokyo, Chiba, Kanagawa, Saitama, Ibaraki, Shizuoka, Tochigi, Gunma and Yamanashi prefectures into five sections, and each section takes turns to have power cut for three hours. The rolling black-outs is expected to continue until the end of April. Part of the power of TEPCO is supplied by the Fukushima Daiichi nuclear power plant, which was seriously damaged by the tsunami caused by the earthquake. In addition to TEPCO, Tohoku Electric Power has also started rolling black-outs and is expected to continue for a month.

Sony

Plants in the Miyagi prefecture were suspended either due to tsunami or power outage caused by the earthquake. The plants in Miyagi are mainly for optical film, magnetic tape and magnetic head production.

Equipment at the Kanuma plant in Tochigi prefecture was not damaged by the disaster but suspended operation due to lack of power in the disaster area. The Inazawa TV assembly plant in Aichi prefecture is far away from the disaster area and was not affected by the earthquake.

TV chip (Bravia engine) production is located in Nagasaki, far away from the disaster area and production has not been affected.

Toshiba

Toshiba announced on March 15 to suspend production at its TV production plant in Saitama prefecture in response to the rolling black-outs. Several production and semiconductor facilities in Kanagawa prefecture will also suspend production in response to the rolling black-outs.

Its production plant in Iwate prefecture was hit by power outage and damage to factory buildings. The plant regained partial power supply on March 13, but operation remains suspended. The plant is mainly for CCD, CMOS and image processing analog IC production.

Production of LSI logic circuit and analog IC in Oita prefecture is far away from the disaster area and has not been affected.

Panasonic

Although no one is allowed to enter its Sendai and Fukushima plants due to aftershocks, the damage will not affect Panasonic's TV business as the Sendai and Fukushima plants mainly focus on networking business.

Its Utsunomiya plant was not damaged by the earthquake but is within the rolling black-out area and will suspend production in response to the rolling black-outs. The Utsunomiya plant is mainly for image and display business.

Sharp

The Yaita plant in Tochigi prefecture was suspended until March 14, and is facing rolling black-outs after resuming operation. The Yaita plant is mainly for small- to medium-size TV assembly business.

With the Kameyama and Sakai plants being far away from the disaster area, neither the earthquake nor the following rolling black-outs have any impact to their production. The Kameyama plant is a TV assembly plant, and the one at Sakai is for LCD panel production.

Impacts of the March 11 earthquake on the supply chain of Japan's LCD TV vendors

Vendor

TV assembly plants

Image processing chip

LCD panel

Other components

Sony

Located in Aichi prefecture; unaffected by the quake

Sony and Toshiba mainly adopt in-house produced image processing chips for high-end TV models.


Sony's image processing chip plant in Nagasaki unaffected by the quake.


Toshiba's image processing chip production plant damaged.

Only Panasonic's 6G plant impacted by quake

Some impact on TAC and color filter supply.


Fire at nearby oil refinery affecting liquid crystal supply from Chisso.


Significant impact on global ACF supply expected.

Toshiba

Plant in Saitama prefecture in rolling black-out zone

Panasonic

Utsunomiya plant in rolling black-out zone

Sharp

Production at Yaita plant in Tochigi prefecture suspended till March 14; affected by rolling black-outs.


Kameyama plant unaffected by the earthquake or rolling black-outs

Source: Companies, compiled by Digitimes, March 2011

Nikkei: Sales ratio of TEPCO by industry

Total power per hour

Industry

Ratio

82.6 million kilowatt

Food

7%

Paper

3%

Railway

8%

Chemical

12%

Non-ferrous metals

5%

Steel

9%

Machinery (including automobiles)

22%

Others

34%

Source: Nikkei, compiled by Digitimes, March 2011

Global assembly plants of Japan-based TV vendors

Vendor

Asia

Europe

America

Sharp

China, Japan, Malaysia

Poland, Spain

Mexico

Sony

China, Japan, Malaysia

-

Brazil

Panasonic

China, Japan, Malaysia, India

Czech Republic, Russia

Mexico, Brazil

Toshiba

China, Japan, Indonesia

Poland

Mexico

Source: Companies, compiled by Digitimes, March 2011

LCD TV production in Japan

Source: Digitimes Research, March 2011

Topics: Page 2

Realtime news
  • Taiwan ODMs post 2016 results

    IT + CE | 4h 44min ago

  • Himax reportedly cuts into supply chain for iPhone

    Bits + chips | 5h 33min ago

  • Micro-Star International nets NT$5.79 per share for 2016

    IT + CE - Stockwatch | 5h 42min ago

  • Foxconn invests in China-based battery maker CATL

    IT + CE - Stockwatch | 5h 48min ago

  • Digitimes Research: 8K technology developed for medical applications in Japan

    Before Going to Press | 5h 53min ago

  • AUO expanding capacity for 65-inch TV panels

    Before Going to Press | 6h 35min ago

  • China market: WeChat becomes largest mobile-e-payment service platform

    Before Going to Press | 6h 37min ago

  • Asustek, HTC under increasing pressure from China smartphone vendors

    Before Going to Press | 6h 39min ago

  • Innolux expected to see 1Q17 net operating profit of NT$15 billion

    Before Going to Press | 6h 46min ago

  • Huawei Technologies invests CNY78.2 billion in R&D in 2016

    Before Going to Press | 6h 46min ago

  • Global WLAN sales in 4Q16 estimated at US$2.43 billion, says IDC

    Before Going to Press | 6h 47min ago

  • Genius Electronic Optical to not deal out 2016 dividend

    Before Going to Press | 6h 48min ago

  • Micro-Star International nets NT$5.79 per share for 2016

    Before Going to Press | 6h 48min ago

  • Acer to deal out 2016 dividend of NT$0.50

    Before Going to Press | 6h 49min ago

Pause
 | 
View more

Global notebook shipment forecast, 2017 and beyond

RESEARCH EXTRAS | Jan 25, 14:34

Digitimes Research estimates that 2016 was another down year for the global notebook market, with shipments dipping below 150 million. While the market will continue shrinking in 2017, the drop will be much less dramatic, as Windows 10 adoption in the enterprise...

Global AP demand forecast, 2017-2020

RESEARCH EXTRAS | Jan 16, 12:01

Digitimes Research expects global application processor (AP) shipments to increase more than 8% in 2017 and surpass the 1.9 billion mark, with smartphones remaining the main application. After slumping in 2015, Qualcomm returned to form in 2016 and will continue...

Global tablet market – 4Q 2016

GLOBAL TABLET | Mar 9, 14:10

In the fourth quarter of 2016, global tablet shipments reached 52.25 million units, showing on-quarter growth of 14.3%.

Taiwan handsets – 4Q 2016

TAIWAN MOBILE DEVICE | Mar 3, 14:43

Taiwan's presence in the global handset market continues to shrink. Its share of global shipments is expected to drop below 2% in the first quarter of 2017.

China smartphone AP shipments – 4Q 2016

CHINA SMARTPHONE AP | Feb 24, 14:04

Digitimes Research forecasts smartphone AP shipments to China in first-quarter 2017 will show an on-quarter drop of 15.9%.

Global notebook shipment forecast, 2017 and beyond
Global AP demand forecast, 2017-2020
The transition to 4k TV - UHD TV market forecast, 2014-2017
  • Wireless broadband developments in Southeast Asia markets

    As of 2013, the 10 ASEAN nations had a total of over 700 million mobile subscriptions, with the CAGR from 2003-2013 reaching 24%. This Digitimes Research Special Report analyzes the various mobile broadband markets in ASEAN and looks at the respective trends in 4G LTE development for those markets.

  • 2015 global tablet demand forecast

    This Digitimes Research Special Report provides a 2015 forecast for the global tablet market and analyzes the strategies of key market players such as Google, Apple, Intel, and Microsoft.

  • 2015 China smartphone panel trend forecast

    This Digitimes Research Special Report analyzes the strategies of key China-based major panel makers BOE, Tianma and IVO for attacking the different market segments through technology and pricing, and their relationship to local vendors Huawei, Lenovo, ZTE, Xiaomi and Coolpad.