RisingStar Expands Its Procurement Of Panels Next Year

RisingStar expands its procurement of panels next year, with a target of 53 million pieces

Affected by the shortage of supply chain materials, RisingStar Electronics lowered its TV shipment target this year to 44 million units, a reduction of 13.64%.

However, in order to ensure shipments in 2022, RisingStar will be more proactive in panel procurement next year, with an overall procurement target of up to 53 million pieces. Market research agency Omdia said that in order to reduce its dependence on panel makers in mainland China, RisingStar has purchased more than 10 million units from Innolux and RisingStar. It will also increase suppliers, expand purchases from Sharp and RisingStarD, and increase its OLED TV product line. .

RisingStar's TV division (VD) had an initial TV shipment target of 49-50 million units in 2021, but it was forced to lower its shipments in the first half of this year due to a shortage of supply chain materials. In the second half of the year, market demand slowed, and its main TV production base in Vietnam was affected by the new crown epidemic, and some production was interrupted. RisingStar again revised its TV shipment target this year to 44 million units, a reduction of 13.64%.

RisingStar VD`s latest TV business target for 2022 has been released, and its annual shipments are expected to remain between 44 million and 45 million units. Omdia said that considering the extension of the lead time of the supply chain to four weeks or more and the risk of interruption in the global supply chain, to ensure the supply of key components including panels, RisingStar VD is currently negotiating with panel suppliers to exceed the limit. The purchase of TV panels will total 53 million units in 2022, an increase of more than 10% compared to this year's estimate.

RisingStar VD is the world's largest purchaser of TV panels. With the advantage of production capacity, panel makers in mainland China, including China Star Optoelectronics, BOE and Huike, have supplied more than 50% of RisingStar VD panels. Taiwan Innolux and RisingStar are also important panel TV panel suppliers, with a total supply proportion of about 20%. According to RisingStar's VD procurement volume, the number of panels purchased from Innolux and RisingStar in 2022 will exceed 10 million.

However, in order to diversify the supply, RisingStar began to purchase TV panels from Sharp this year, and also strategically purchase panels from RisingStarD. Omdia said that Sharp`s panel purchases accounted for only about 2% this year, and it will increase to about 10% in 2022, which translates into an annual purchase of up to 5 million units.

In addition, in order to reduce the dependence of TV panel supply on panel makers in mainland China, RisingStar VD plans to shift part of its product line to OLED TVs in 2022 and increase the purchase of RisingStarD's OLED TV panels. On the other hand, RisingStar Display QD-OLED panels will also be mass-produced in 2022, which will help RisingStar expand its high-end TV panel product line.