The sale of LCD TV is growing and with it the outsourced design and manufacturing activities are also booming. It is expected that the outsourcing of LCD TV manufacturing to contract manufacturers would shoot to 38% by 2010 and is higher than the figures of 27.1% in 2005. The in house LCD TV manufacturing is expected to come down to 62% from the figures of 72.9% in 2005.
Certainly contract manufacturers would gain and those companies having strong design capabilities would be the biggest beneficiaries. There has been an increase in flat panel outsourcing due to the availability of ASSP chips such as display processors and MPEG decoders.
It is expected that in the years to come Japanese consumer electronics OEMs would be increasing their use of contract manufacturers in the case of entry and mid level LCD TVs. As of now Taiwanese companies dominate outsourcing in the case of LCD TV. I believe that China and India would too try to get a share in this.
