Sony to Tap Hon Hai, Qisda to Build LCD TVs

emsnow, The China Post: Sony is tapping into Taiwan-based Hon Hai Precision Industry (Foxconn) and Qisda Corporation to manufacture LCD TVs. This is the first time that Foxconn and Qisda will be assembling LCD TVs for Sony. Qisda is the manufacturing arm of BenQ. Foxconn will be building Sony’s 32″ and 37″ LCD TVs while Qisda will be making slightly larger and upscale ones. Wistron is the other Taiwanese contract manufacture Sony will be using in 2008 to build up to 4 million LCD TVs. Foxconn will be building 1 million units that will eventually make to US shores. This is surprising news since most TV brands have assembly operations based in Mexico to save on import taxes via NAFTA.

Sony plans to ship between 18 million and 20 million LCD TVs in 2008 and procure 30% of the LCDs from AU Optronics (AUO) and 10% each from Chi Mei Optoelectronics (CMO) and Sharp. In terms of numbers, AUO will ship 5.4 to 6.0 million LCD TV panels to Sony while CMO and Sharp will each ship 1.8 to 2.0 million panels to Sony.

Sony’s 18 to 20 million annual shipment target for LCD TVs in 2008 is very aggressive considering that the company shipped just 9 million in 2007. Unfortunately, Sony is concentrating on focusing on mid- to low-end models. 40% of these models will be sporting a LCD from either AUO or CMO. Sony is being super aggressive because its main competitor is Samsung, who also has ambitious plans in 2008.

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