Chimei Innolux CMI because of relocating assembly lines from southern China to other places in China, has downwardly adjusted its 2010 target shipments to below 40 million LCD monitors from 45 million units, but LCD TV shipments will still be able to reach the lower end of the target zone with 4-5 million units, according to company CEO Hsing C Tuan.
The relocating resulted in shipment decreases in the second quarter, but they are expected to start recovering in August, Tuan added.
LED-backlit models will account for 60% of the company's total monitor shipments and 25-30% of LCD TV shipments by the end of 2010, Tuan noted.
Jyh-Chau Wang, president of CMI's production base at the Southern Taiwan Science Park STSP indicated that the China market has seen strong growth for LED-backlit display products.
Apart from getting LED supply from its strategic partner Nichia, CMI said it is also purchasing LEDs from other suppliers, with priority given to its affiliates, such as Chi Mei Lighting Technology CMLT Gio Optoelectronics and Advanced Optoelectronic Technology AOT
In response to speculations about CMI's relationships with Foxconn Electronics Hon Hai Precision Industries Tuan emphasized that the two companies are independent of each other, and CMI will not spin off its OEM business to Foxconn.
However, CMI has no problem working with Foxconn, Tuan said. With its expanded LCD TV OEM business and a 10% share in the global notebook OEM market, Foxconn will help expand CMI's panel business, he said.
