Taiwan makers shipped 71.5 million LCD TVs in the second quarter of 2010, increasing 11.5% sequentially, according to Digitimes Research.

Taiwan's LCD TV makers benefited from increased outsourcing from Japan-based vendors such as Sony and Toshiba looking to lower production costs, Digitimes Research analyst Jessie Lin explained.

The 32-inch and larger segment saw its share of shipments increase 2.9 percentage points to 58.6% in the second quarter, boosted by drops in LCD panel prices, Lin added.

The Digitimes Research analyst indicated that tight supply of LCD TV panels was eased in the second quarter, resulting in price drops of 1.5-3% sequentially.

TPV Technology was the leading maker in the second quarter, followed by Compal Electronics, Amtran Technology, Wistron and Foxconn Electronics (Hon Hai Precision Industry). Foxconn has become a top-five maker since acquiring Sony's manufacturing plant in Mexico in January 2010.

But LCD TV inventories in the end market remained high in the second quarter. In China, sales were weaker-than-expected during the Labor Day holiday in May, while in Europe, the debt crisis dampened overall spending on consumer electronic (CE) products, Lin said. The US consumer confidence index was also low.

Source: Digitimes Research, July 2010