Taipei, Friday, August 22, 2014 00:11 (GMT+8)
mostly cloudy
Taipei
28°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
  • Scientech to ramp wet-process semiconductor equipment

    Bits + chips | 2h 8min ago

  • Digitimes Research: Entry-level smartphone may help Amazon extend e-commerce reach

    Mobile + telecom | 2h 10min ago

  • Jeng Shiang sees profit margin drop nearly 13% on year in 2Q14

    Displays | 3h 12min ago

  • Taiwan market: Taiwan Star Cellular to kick off 4G operations

    Before Going to Press | 3h 13min ago

  • China may raise LED tariffs to 10%

    Before Going to Press | 3h 21min ago

  • Intel, CHT ink cooperation

    Before Going to Press | 3h 25min ago

  • TSMT expected to see NT$30 million increase in monthly profit due to delisting subsidiary RMIH

    Before Going to Press | 3h 26min ago

  • TSMC 2H14 foundry capacity booked up mostly for new iPhone chips

    Before Going to Press | 4h 2min ago

  • TDUA expects Taiwan makers to bump up OLED display development

    Before Going to Press | 4h 21min ago

  • China TV vendors extending promotion abroad

    Before Going to Press | 4h 22min ago

  • Samsung resumes supply of Mobile RAM for use in new iPhone

    Before Going to Press | 4h 23min ago

  • Delta Electronics to showcase DLP video wall at Integrate 2014

    Before Going to Press | 4h 24min ago

  • Chip makers prepare 100 million units of production capacity for new iPhone

    Before Going to Press | 4h 25min ago

  • Taiwan solar cell makers see rebound in orders from China

    Before Going to Press | 4h 26min ago

  • Foxconn sets up rental electric car joint venture in China

    Before Going to Press | 4h 29min ago

  • Supply chains for Apple are ramping up production for iPhone 6

    Before Going to Press | 4h 31min ago

  • Japan smartphone market: Competition stiff due to high barriers, says HTC executive

    Before Going to Press | 4h 33min ago

  • Digitimes Research: GTAT estimated to supply up to 1.35-2.25 million 5.5-inch iPhone sapphire covers in 2014

    Before Going to Press | 4h 34min ago

  • Digitimes Research: Demand for low-cost smartphones growing in Southeast Asia

    Before Going to Press | 4h 35min ago

  • Perfect Optronics cooperation with Potevio reportedly to pave way for Foxconn marketing in China

    Before Going to Press | 4h 36min ago

Pause
 | 
View more

Analysis of China's revised domestic semiconductor industry goals

RESEARCH EXTRAS | Jul 16, 18:09

Facing a funding shortage for local IC manufacturers, the China State Council in June 2014 published guidelines to strengthen government support for China's semiconductor industry, while stating the short-, mid-, and long-term goals for the related industry supply...

The transition to 4k TV - UHD TV market forecast, 2014-2017

RESEARCH EXTRAS | Jun 26, 13:59

Ultra HD TV vendors are facing challenges due to an overall slowdown in the TV industry and are concerned whether relative supply chains can provide compatible Ultra HD content and services. However, trends show that content makers as well as panel and chip makers...

China smartphone market and industry – 2Q 2014

CHINA SMARTPHONE | Aug 12, 17:41

A delay in the launch schedule for low-cost 4G smartphones resulted in a mere 4.8% increase in second quarter shipments in the China market. However, with telecom operators planning on increasing their subsidies in the second half of the year, demand will be...

Taiwan small- to mid-size LCD panels – 2Q 2014

TAIWAN FPD | Aug 6, 21:18

Taiwan makers' small- to medium-size panel shipments reached 351.4 million units in the second quarter of 2014, up 16.8% sequentially but down 2.8% on year.

Global tablet market – 2Q 2014

GLOBAL TABLET | Aug 1, 18:12

According to Digitimes Research, global shipment of tablets reached 55 million units in the second quarter of 2014, down 4.5% from the previous quarter and up 17.9% year over year.

DIGITIMES Translation Services
DIGITIMES Marketing Services
Greater China touch panel shipment forecast through 2015
  • 2014 global high brightness LED market, trends and shipment forecast

    For the global LED lighting market, the market size will reach US$25.82 billion in 2014 or a market penetration rate of 23.4%. This is attributable to exponential shipment growth for light bulbs, tubes, and directional lamps.

  • Greater China touch panel shipment forecast through 2015

    This Special Report provides forecasts through 2015 for Greater China touch panel shipments with breakdowns based on technology (glass, film, resistive), application (smartphone, NB and tablet) and by firm.

  • 2014 global tablet demand forecast

    This report analyzes the main players, their strategies and shipments forecasts for 2014, as well as other factors contributing to either growth or decline in various segments within the tablet market, with a particular focus on Apple, Google, Samsung, and Microsoft, along with whitebox vendors.