Computer Monitors

The computer monitor industries in mainland China and Taiwan have moved from CRT-monitor-dominated production to LCD-monitor development and manufacturing.
Over the next 12 months, producers expect to further boost their output, benefiting from higher LCD-panel availability at cheaper prices.

Now you can take advantage of these trends before your competitors do. Because in this report, you'll get profiles of 68 suppliers who can help you source more effectively than ever.

Plus you'll receive a comprehensive overview of the computer monitor industry in mainland China and Taiwan, outlining key issues, production trends, R&D plans and more.

What you'll get

In-depth profiles of 29 tier-one suppliers, highlighting production capabilities, export strategies, expansion plans, and R&D and QC facilities — based on personal factory visits and exhaustive interviews with senior managers

Short profile tables of 39 additional manufacturers featuring key sourcing statistics including factory locations, manufacturing capacities, export markets, and R&D and quality indices

An inside look at manufacturers that supply to the world's leading corporations, including Daewoo, Dell, Fujitsu, HP, IBM, NEC, Siemens, Sampo and ViewSonic

A Product Gallery of 256 popular CRT and LCD monitor export models, all with detailed specifications and full-color pictures

How you'll benefit

Identify suppliers that continue to manufacture and in some cases are boosting output of CRT monitors

Gauge the QC capabilities of makers by pin-pointing the ones that are capable of performing thorough inspections on LCD panels and products

Benefit from a special focus on Guangdong province, highlighting its role as a prime sourcing center for computer monitors

Get quick-to-use summary listings covering all featured suppliers, with easily comparable statistics plus verified contact details and website addresses

Executive summary

The computer monitor industries in mainland China and Taiwan have completed the transition from being CRT-dominated to being LCD-centric. In 2004, mainland China's output of LCD monitors surpassed that of CRT monitors — a milestone Taiwan achieved in 2003.

In 2005, suppliers are boosting capacities for LCD monitors in anticipation of a wider availability of inexpensive LCD panels. Seventy-four percent of mainland China companies and 64 percent of Taiwan makers anticipate higher monthly outputs in 2005. At the same time, makers are converting production lines and cutting down monthly output of CRT monitors.

These are few of the main findings of this report, which is based on a survey of 68 computer monitor manufacturers in mainland China and Taiwan. Global Sources also visited the factories of 29 suppliers to capture in-depth profiles of their manufacturing and export capabilities.

Manufacturing base shifts to mainland China
Global computer monitor market is dominated by about 30 Taiwan-owned companies with average production capacities of 5,000 to 1 million units per month. However, the center of production activities is not Taipei, but Dongguan, Shenzhen, and other mainland China cities.

In 2005, Taiwan makers will produce 62.2 million LCD monitors and 26.5 million CRT monitors, representing 73 percent and 56 percent of global shipments, respectively. However, eight out of every 10 monitors from Taiwan suppliers will be physically assembled in mainland China.

Supplier base for CRT monitors shrinks
Only 43 percent of surveyed companies are still producing CRT monitors. Among them are Taiwan and mainland China's biggest producers of computer monitors, such as BenQ, Proview and KTC.

The supply of CRT monitors is consolidating into a few major suppliers, as startups and small producers are unable to survive on the line's narrowing profit margins. Ironically, tier-one monitor suppliers are expecting their output of CRT monitors to rise in 2005, despite a general market contraction.

The biggest sourcing opportunities are in LCD monitors. An average 4.7 percent surplus of LCD panels predicted throughout 2005 is enticing makers to ramp up output. Additionally, makers who were forced to stop producing LCD monitors at the height of the panel shortage in 2003-2004 are reactivating assembly lines and eyeing export markets.

Another big impetus to the supply of LCD monitors in 2005 is the steady decline in panel costs. After the big slashes of H2 2004, buyers can look forward to further 5 percent to 10 percent cuts in 2005. Bigger cutbacks are likely with large screen sizes.

Complementing the abundant supply of LCD panels is the record shipments forecast for controller ICs. Up to 125.2 million LCD controller ICs are projected to be shipped in 2005, 46 percent higher over 2004.

Industry overview

Mainland China is the unchallenged global production center for computer monitors. In 2004, makers in the mainland produced almost 90 million LCD and CRT monitors. Most of the output is shipped overseas.

Though physically produced in the mainland, a huge percentage of computer monitors are actually assembled by Taiwan-based suppliers. In fact, Taiwan's Market Intelligence Center (MIC) calculates that 71 percent of global shipments of LCD monitors originate from Taiwan-based suppliers. An estimated eight out of every 10 computer monitors shipped by Taiwan suppliers are produced in factories located in mainland China.

This dual-character domination of the computer monitor industry is expected to continue through 2005. After being hit by a severe supply shortage of LCD panels from H2 2003 to H1 2004 and CRT cost increases throughout 2004, the computer monitor industry is now experiencing a major rebound.

LCD panel prices are falling fast and are projected to bottom out by the middle of 2005. Many manufacturers project their output, especially for LCD monitors with TV function and large-screen models, to substantially increase in 2005. Some makers have also announced that they will convert CRT monitor production lines to LCD monitor production.

In contrast, the number of CRT monitor manufacturers is on a decline. Many suppliers acknowledge that their LCD monitor sales now outstrip those of CRT monitors, but point out that profit opportunities still exist for low-cost CRT models. Only big players like Great Wall, Hedy and Huipu have announced plans to continue big-volume CRT monitor production.

Out of more than 50 computer monitor manufacturers in mainland China, over 70 percent focus on LCD monitors. Only 18 out of the 43 mainland China suppliers covered in this report still produce CRT monitors.

Mainland China-based companies covered in this report have an average in-house production capacity of 25,000 units per month.

Mainland China: Manufacturing base for Taiwan, South Korean suppliers
Many Taiwan-based monitor companies have been relocating factories to the mainland since 2001. Almost half of all manufacturers are located in Guangdong. Others are clustered in the provinces of Sichuan, Jiangsu and Zhejiang.

The last four years have seen mainland China grow to become the world's most important manufacturing base for computer monitors. Beijing's rich base of IC suppliers and engineering talent has produced a smaller cluster of startup LCD monitor suppliers in the capital, but most of them cater to the domestic market.

South Korean companies, including Samsung Electronics and Hyundai Electronics, have established manufacturing bases in Tianjin province, Nanjing in Jiangsu province and Weihai in Shandong province.

Taiwan ramps up LCD monitor output, scales down CRTs
There are about 30 companies that manufacture LCD monitors in Taiwan. At least 10 of them also produce CRT monitors, but this number is expected to shrink in 2005. Companies still in the line are scaling down development plans for CRT monitor production to make room for more lucrative LCD monitors or LCD TVs.

Samples of supplier profile

ADI Corp.
ADI Corp. belongs to a Taiwan-based group of companies involved in the fields of education, biotechnology, logistics and distribution, trading, communications, electronics and computer products. ADI's product catalog includes CRT and LCD PC monitors, TV/monitors, projectors and thin client displays.

ADI has a total output of 120,000 monitors per month, which consists of 80,000 CRT monitors and 40,000 LCD monitors. In 2005, total monthly output will be maintained at this level, except that output of CRT and LCD monitors will be equal at 60,000 units each.

Established in February 1979, ADI began producing PC monitors by launching an Apple II-compatible monitor the following year. ADI claims to be the first PC monitor maker to be listed on Taiwan Stock Exchange, with its initial public offering in 1987.

ADI projects an 82 percent revenue growth for 2004 and expects overall revenue to grow to about US$80 million by end of 2004.

All of ADI's monitors are exported, with 90 percent of output carrying its own brand, ADI. The remaining 10 percent carry buyers' brands.

Europe absorbs about 55 percent of ADI's monitor shipments, while 45 percent goes to the United States.

Manufacturing capability
Headquartered in Taipei, Taiwan, ADI maintains branch offices in the United Kingdom, Germany, mainland China, the United States, France, Japan, Hong Kong and Thailand. Each branch office provides customers with technical support, training, after-sales services and troubleshooting facilities supported by trained technicians.

ADI is also exploring developing markets such as Africa and India. It plans to open more sales offices in Italy, the Netherlands and Belgium.

ADI operates three factories in Shenzhen, in mainland China's Guangdong province. The factories range in size from 13,800 square meters to 15,200 square meters. The largest one has a floor area of 70,000 square meters. All plants are ISO 9001- and ISO 14001-certified.

ADI also has a fourth factory in Inner Mongolia, which underwent expansion in 2004. With the Inner Mongolia plant set to be fully operational by the end of 2004, the company's total capacity is expected to climb to 200,000 CRT and 80,000 LCD monitors per month in H1 2005.

ADI has a total of 16 production lines across its three factories.

The factories are equipped with three SMT lines, four CRT monitor assembly lines and two LCD monitor assembly lines, enabling the company's workforce to handle SMT production and assembly in-house.

ADI outsources PCB making, mold making, coating and painting to subcontractors.

Product development
ADI has over 1,000 employees including 30 R&D engineers based in Taipei. The company's R&D team undergoes technical training programs both inside and outside the company.

Sample of product gallery

CRT monitors Company:ADI Model: V75F (Flat CRT) Screen size inches: 17 Resolution pixels: 1,280x1,024

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