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Wistron denies reports on disposal of LCD TV manufacturing assets

2012/05/15 16:16:43

Taipei, May 15 (CNA) Wistron Corp., one of Taiwan's leading contract electronics makers, said Tuesday it has no plan to dispose of its liquid crystal display (LCD) TV manufacturing assets, denying media reports on the sale.

Wistron said the LCD TV manufacturing division has become a strategic investment for the company as the presence of the division has helped the contract electronics maker establish ties with some customers for production of high-end electronics, such as 3D TVs and home theaters.

Wistron said the LCD TV department is not only a TV assembly division but also a research and development unit for the company.

The company's comments came after local media reports said Wistron had an intent to sell its LCD TV manufacturing assets to Hong Kong and Singapore listed TPV Technology Ltd. after the division incurred losses for the first quarter of this year.

While Wistron did not respond directly to whether the LCD TV division posted losses in the past quarter, the division suffered a lack of economies of scale on limited orders.

The media reports said shipments of the LCD TV division for the first quarter of this year fell to 1.2 million units from 1.88 million units recorded in the fourth quarter as its customers shifted orders away to other manufacturers.

The reports said Wistron has become cautious about the division's earnings outlook and a plan of disposal came to mind, adding Wistron Chairman Simon Lin and TPV Chairman Jason Hsuan had even met to discuss the sale plan recently.

Wistron said the company does not have any plans to sell the LCD TV division to TPV or to any other company.

According to Wistron, the LCD TV division currently accounts for less than 10 percent of the company's total sales.

On its website, TPV, a display solutions provider, says it is the largest PC monitor and third largest LCD TV manufacturer in the world.

Market analysts have expected shipments of TPV's PC monitors to reach 18 million units for 2012, compared with 13 million to 14 million units recorded in 2011.

(By Han Ting-ting and Frances Huang)