Konka, who is a home appliance company in China, has stepped into TVs and 32″ LCD TVs in particular. According to news sources Konka’s 32″ LCD TVs sold very well during China’s long holiday in October. The LCD manufacturer that is supplying those 32″ LCD TV panels is Chunghwa Picture Tubes (CPT). CPT is shipping about 50,000 LCD TV panels to Konka. CPT has many China-based customers such as TCL and Xiamen Overseas Chinese Electronics (Xoceco). Currently CPT ships 32″ and 37″ LCD TV panels to these customers and will add 26″ and 47″ in Q4 of 2006. In 2006, CPT expects total LCD TV shipments to hit 3.5 million units and plans to ship 6 million in 2007.
CPT is a small player when it comes to overall LCD manufacturing. The larger players in the island of Taiwan are AUO and CMO who have much bigger manufacturing capacities than CPT. One of the main goals of LCD TV panel makers has been to lock in a major CE brand. Brands such as Sony, Samsung, Sharp, Matsushita (Panasonic), and Philips. Without a strong relationship with at least one of these brands, the LCD TV panel suppliers will be mostly shipping to no-name brands. With the development of China as a potentially very large geographic region for LCD TVs, companies like CPT can start to compete by developing relationships with local Chinese brands.