With its new joint venture (JV) with Japan-based Sanyo Electric, Taiwan-based Quanta Computer expects its ODM-based TV business to see significant growth over the next ten years, according to Michael Wang, CEO of Quanta Computer.
Sanyo Electric and Quanta Computer have officially signed a letter of intent (LOI) to invest US$65 million in capital to develop the JV, which will be located in Taiwan, according to both companies.
The newly formed company will manufacture and sell flat panel TVs under the Sanyo brand and it is expected to begin operation in the third quarter of this year, with the details of the cooperation between the two firms to be finalized over the next three months, Quanta Computer pointed out.
However, Wang stressed that Quanta Computer will only focus on ODM business and the company has no intention to develop its own-brand business.
Last year, Quanta shipped 350,000 LCD TV and the sales contribution from its LCD TV business only accounted for 2% of the company’s annual revenues. Quanta’s major LCD TV customers include Acer, Panasonic (brand name of Matsushita Electric), ViewSonic and Philips Electronics, according to market sources.
Sanyo posted sales of 110 billion yen for its TV business in 2005, representing a drop of more than 15% from 2004, the sources said.
The Japanese company had a 5.5% global market share last year on shipments of 9.7 million TVs, most of which were CRT TVs, according to iSuppli.
Sanyo Electric and Quanta Computer have officially signed a letter of intent (LOI) to invest US$65 million in capital to develop the JV, which will be located in Taiwan, according to both companies.
The newly formed company will manufacture and sell flat panel TVs under the Sanyo brand and it is expected to begin operation in the third quarter of this year, with the details of the cooperation between the two firms to be finalized over the next three months, Quanta Computer pointed out.
However, Wang stressed that Quanta Computer will only focus on ODM business and the company has no intention to develop its own-brand business.
Last year, Quanta shipped 350,000 LCD TV and the sales contribution from its LCD TV business only accounted for 2% of the company’s annual revenues. Quanta’s major LCD TV customers include Acer, Panasonic (brand name of Matsushita Electric), ViewSonic and Philips Electronics, according to market sources.
Sanyo posted sales of 110 billion yen for its TV business in 2005, representing a drop of more than 15% from 2004, the sources said.
The Japanese company had a 5.5% global market share last year on shipments of 9.7 million TVs, most of which were CRT TVs, according to iSuppli.