A leading supplier of LCD panels to car audio manufacturers is seeking bankruptcy, which may cause delays in shipments of some multimedia car radios and rear seat monitors, said industry members.
Chunghwa Picture Tubes, CPT, of Taiwan supplies at least six of the leading car audio and mobile video companies, said suppliers. It filed for bankruptcy protection in December.
If the company closes its doors or is unable to make shipments during its reorganization it could result in delays of car audio products of more than 60 days, said two industry members.
We know of at least one supplier that is warning its dealers to expect delays in product shipments as a result.
CPT is one of the top 3 or 4 LCD panel suppliers to the car audio industry, and it is a large supplier to smartphone, tablet and PC makers including Samsung and Sony.
According to the OLED Association, CPT started manufacturing display components in 1971 and began producing LCDs in 2003. It holds almost an 8 percent share of the small panel LCD market.
One supplier told us CPT is seeking a Chinese backer to help it continue operations. He said, “No one knows if they will close their doors or reopen. Suppliers are also looking at alternatives and there are alternative suppliers.”
Another supplier said he expects the company will go bankrupt and shut down.
The LCD panel supply chain has been stressed for years. At times the panel makers have suddenly shifted nearly all their production to smartphones or tablets to meet spikes in market demand, leaving 12 volt panels in back order.
According to reports CPT had closed two factories in December. It filed requests for debt extension leading some of its key material suppliers to halt shipments.
Photo credit Wikimedia Commons via Taiwan News