TV manufacturing outsourcing to reach 43% this year

Deborah Yang

TVs manufactured using outsourcing is expected to reach a record 43% of all LCD TVs shipped globally this year, according to IHS statistics.

The research firm that outsourcing manufacturing has become “one of the most important business strategies for TV brands” because it can improve supply-chain cost management and increase time-to-market.

IHS also said most TV brands selling low-cost, entry-level products “plan to increase their outsourcing from vendors in Taiwan and China”, with LCD TV panel supply proving tight in 2014 – especially for “mainstream” 32-inch TVs.

“A major driving force behind TV outsourcing is the constraint on TV panel supply, which can cause TV brands to increase their outsourcing from vendors who are able to secure a stable and competitive panel supply,” said director of supply-chain analysis at IHS, Deborah Yang.