Sony will increase its outsourcing orders to 50% of its total shipments, from the previous 30%, according to a Japanese-language Yomiuri Shimbun report. Due to the relationship between Foxconn Electronics (Hon Hai Precision Industry) and Sony, Chimei Innolux (CMI) will be the major beneficiary.

Yoshihisa Ishida, president of Sony's TV business group, took over the management in April 2009. Under Ishida, Sony has gradually reduced its production costs and increased its outsourcing. Sony has reduced its assembly plants to four, from nine plants two years ago.

Due to weaker than expected demand in the US market, Sony will not be able to reach its shipment goal of 25 million units for the 2010 fiscal year ending on March 31, 2011, but the vendor aims to ship 35 million units for the 2011 fiscal year.

Foxconn and Wistron from Taiwan are the major OEM partners of Sony, and CMI expects to land more LCD TV panel orders from Sony further helping to improve CMI's utilization rates and operations.

By: DocMemory
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