Few people realise that when they buy a television from a well-known Japanese brand, the product they take home may have been put together by an entirely different company.
TVs from Japanese brands such as Sony and Toshiba are now increasingly likely to be assembled by groups such as Wistron or Hon Hai, the Taiwanese contract manufacturer, better known by its trade name Foxconn . Sony, for example, expects to outsource about two-fifths of the 25m TVs it will sell this year – double that of recent years.
The move towards outsourcing is attracting new entrants, interested in the industry's high volumes and relatively stable, if low, margins. The industry has been dominated by little-known companies such as Hong Kong and Singapore-listed TPV Technology and Amtran, which primarily manufacturers for low-cost TV brand Vizio. But those looking to get into the game are better known for other high-tech products including Taiwanese notebook manufacturer Compal and Wistron, the former contract manufacturing arm of Acer.