Reported by DigiTimes, Â Lite-On Technology’s LCD monitor OEM production base located in Dongguan, Southern China suffered a fire on February 3. The legal name of the production facility is Titanic Capital Services, a Lite-On Group affiliate. According to the report, there are 19 LCD monitor production lines and 15 were affected by the fire. Lite-On manufactures LCD monitors for Acer, Dell, HP, and Lenovo and these companies will certainly be impacted.
We are in a slow season when it comes to LCD monitor demand so the impact should be much less than if we were entering the second half of the year.Â However, the report indicates that HP would be hardest hit with the fire.
It is estimated that Lite-On will ship about 20 million OEM LCD monitors in 2008. Unless theÂ damage to Â 79% of its production capacity is minimized and restored quickly, it will be difficult to see a scenario where Lite-On can accomplish its goal. Other OEM manufacturers like Innolux Display, TPV Technology and others will likely see increased orders in the short term.
Economies of scale is extremely important when manufacturing commodity items such as LCD monitors but it seems a prudent move to diversity production just a bit in case emergencies strike as was the case with Lite-On.
[tags]Lite-On, LCD Monitor, Innolux Display, TPV Technology, HP, Acer, Dell, Lenovo[/tags]