Worldwide top ten SIs plunged by 23.3% MoM in February

According to WitsView’s global LCD monitor SI shipment survey, shipments of top ten SIs plunged by 23.3% MoM to 10.65 million units in February 2010. This is mainly attributed to the Chinese New Year (CNY) holiday – with fewer working days, demand was reflected ahead of the schedule in January, coupled with tepid end-market demand for LCD monitors, which led to the slow down of downstream customers’ product pull-in, monthly growth rate of top ten SIs reduced across the board, resulting in a sharper-than-expected overall decline. In March, although some SIs continue to suffer the impact from shortages in labor and component, production will gradually normalize after the CNY holiday. However, as market buzz about a possible decline in panel prices spreads, it will likely affect downstream customers’ order volumes in March and April. Hence, the market currently holds a “wait-and-see” attitude.

As for the dynamics of individual SIs in February 2010: Wistron’s shipments dipped by only 3% MoM, the softest decline among all SIs this month, thanks to the increase in order volume from its main customer Acer. On the other hand, those that suffered more severe declines were Compal and Jean, sliding by 32% and 41.4% respectively; demand of these two SIs fluctuates more substantially due to their weaker customer bases. Other SIs impacted by fewer working days in February are: TPV, declined by 31.4%, and Innolux, plummeted by 33.6%, the second largest decline this month.


Worldwide top 10 SI shipment by unit in Feb 2010

Shipment Unit: K pcs

Source: WitsView, 2010/3

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