Taiwan to Cease Production of CRT TVs

Taiwan's production of cathode ray tube (CRT) television sets may cease soon as leading domestic TV producers, including Taiwan Kolin Co., Proton Electronic Industrial Co., Sampo Corp., and Teco Electric & Machinery Co., are going to either move their production lines abroad or completely stop making CRT TV sets here.

Hung Ming-chang, Proton's chairman, indicated that the demand for CRT TVs has obviously declined, particularly in recent years as liquid crystal display (LCD) TV sets have emerged and gained increasing popularity in the market. To lay more emphasis on the production of LCD TVs, Proton will retain only one of its production lines for the fabrication of high-end 29" CRT TVs, and will close the production lines for 21", 29", and 34" CRT TV sets before mid-2006.

With the disadvantages of heavy weight, bulky bodies, and thin profits, CRT TVs are in declining demand, so Proton has decided to turn its focus to the production of LCD TV sets for both the local and overseas markets, Hung noted.

The global demand for LCD TVs is estimated to reach 40 million units annually in 2006, almost double the level of this year. The LCD TVs that will win in the market next year will be those that have more functions and the clearest screens, industry experts have observed.

Hung estimated that Taiwan has exported about 30,000 LCD TVs this year, and that the number might jump to 100,000 units for 2006; of which, 10,000 units would be generated on an ODM basis for the clients in Japan.

Taiwan Kolin decided to move all of its production lines for CRT TV sets to the Philippines by the end of this year and will resume production of CRTs there early next year. The CRT TVs turned out in the Philippines will be sold back to Taiwan and the markets in Southeast Asia, while the production lines in Taiwan will be focused on the manufacture of LCD TVs.

However, Sampo, Taiwan's largest CRT TV manufacturer, insisted that the company would keep producing CRT TVs on the island as long as they are still profitable and said that it will import some parts from mainland China to lower manufacturing costs as well.

source & copyright: CENS