AUSTIN, TX — Some 25% of LCD TVs shipped in the first quarter were made by external OEMs/EMS, up 1% sequentially.

Furthermore, outsourcing could spike in the near term in response to pricing pressure, said Display Search. Standing to benefit include major contract companies such as AmTRAN, Compal, Grundig, Jabil, TPV and Wistron.

The top 10 TV brands mostly manufactured LCD TVs in-house, with the exception of Vizio, which outsourced 100%, and Philips, which outsourced 62% of its shipments in the quarter, Display Search said.

As the LCD TV market becomes commoditized, many brands plan to increase their LCD TV outsourcing for specific regions and products to build market share and optimize the total supply chain cost going forward, the firm said.

“The outsourcing ratio is likely to increase to 30% or more in 2010,” said Deborah Yang, DisplaySearch director of monitor and TV market research. “However, shortages in LCD TV panels impacted panel prices and allocation for TV manufacturers. LCD TV brands, as well as OEMs, will need to pay higher prices to ensure that they have an adequate panel supply. Supply of LCD TV panels is a critical point for OEM business success.”

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