Sony inaugurates third overseas logistic center in Taiwan

Sony of Japan recently inaugurated its Taiwan Logistic Center located in central Taiwan's Chungkang Export Processing Zone, the third overseas logistic center set up by the big Japanese consumer-electronics company.

Fukuda Takash, senior general manager of Sony's flat TV business group, convened the inauguration ceremony and stressed that Sony aims to sell 10 million Bravia LCD TVs this year and would procure 30% of the needed TV panels from Taiwan.

The AU Optronics Corp. (AUO), No. 1 large-size thin film transistor-liquid crystal display (TFT-LCD) panel manufacturer in Taiwan, is expected to benefit the most by Sony's local logistic center as the Taiwan company is currently the largest local supplier of TV panels to the Japanese brand.

AUO has won Sony's orders for 40-, 37-, 32-, 26-, and 20-inch TV panels, and is scheduled to soon start shipmen of 46-inch TV panels to the major customer.

Industry sources pointed out that Sony set up the logistic center in Chungkang Export Processing Zone so that the firm could more easily access suppliers in the Central Taiwan Science Park (CTSP), which has become one of the most important TFT-LCD panel production citadels in Taiwan. Sony's Taiwan Logistic Center will be responsible for locally purchasing TV panels and shipping them to Sony's global TV plants for assembly.

In addition to Takash, Kenji Sakai, chairman and managing director of Sony Taiwan Ltd., and some senior Sony Japan executives also attended the ceremony. Other dignitaries included AUO chairman K. Y. Lee, Economic Minister Chen Ruey-Long, Council for Economic Planning and Development (CEPD) director Ho Mei-yueh etc.

Ho pointed out that the new logistic center creates a new operation mode (local purchase and export from a processing zone) that is expected to increase local TFT-LCD panel makers' shipments.

Amid the fiercely competitive LCD TV market, Takash said, more efficient logistic management has become a key factor for enhanced competitiveness. The senior general manager added that he believes that through the new logistic center Sony can further strengthen its cooperation ties with local partners and create a win-win situation for the two parties in the international LCD TV market.

AUO's TV panels are being processed by Sony's new logistic center. According to Sakai, the global demand for LCD TVs has been rising. Taiwan's panel industry has been developing quickly and effectively, as well as being upgraded sufficiently so that Sony wants to further strengthen its cooperation ties with local partners.