Delta to Expand LCD TV Power Supply Production

December 13, 2005 by Jeff Shepard

Delta Electronics Inc. recently announced that it would expand its production capacity of power supplies for liquid crystal display (LCD) TVs at its plant in Dongguan, Guangdong Province, mainland China, according to a report in the Taiwan Economic News.

The report quotes a senior official at Delta saying that his company's LCD TV power supplies have been certified by several different LCD TV makers, and that the company is scheduled to begin mass shipments next year with an annual volume about 10 times that of this year

Delta initially aims to grab a 10% share of the global LCD TV power-supply market, the official said, while its long-term goal is a global share of 20% to 30%. The company claims to have already captured about 50% of the overall global power-supply market, and Delta has been actively developing new power supplies for game consoles, consumer electronics, audio/video (A/V) equipment, and LCD TV products. Currently, Delta is responsible for supplying 100% of the power supplies for Microsoft's Xbox360 game consoles and for many of the power units for Apple's iPod portable devices, according to the report.

About 20 million LCD TVs are expected to be sold in the global market in 2006, up from about eight million units in this year, industry sources. Some hypermarket chains, such as Wal-Mart, have pushed 37-inch LCD TV models priced under US$1,1000 each. To facilitate the rapid growth of LCD TV sales worldwide, Delta has also taken several steps to greatly expand its production capacity for cold cathode fluorescent lamps (CCFL) tubes, a key component in LCD TV backlight modules

To meet strong customer demand, Delta plans to increase the number of CCFL tube production lines at its plant in Taoyuan, northern Taiwan, to 10 by the end of the year from the current six, and the number will grow to 12 in the first quarter of 2006. Delta's new CCFL plant in Wujiang, Jiangsu Province, mainland China, is also scheduled to inaugurate 18 CCFL lines in April 2006. Delta's total of 30 CCFL production lines on both sides of the Taiwan Straits are expected to eventually generate annual revenue of about US$180 million for the company.