3 March 2008
by Paul Kunert
PC makers are seeking alternative routes of supply for LCDs after a fire at a Lite-On factory in the Far East effectively shut down the majority of production lines at its OEM plant.
According to a company filing with the Taiwan Stock Exchange, the blaze at the production facility in Southern China affected 15 of the 19 assembly lines supplying Dell, Lenovo, Acer and Hewlett-Packard.
The full extent of the damage to HP and other companies’ displays manufactured by Lite-On was yet to be defined said a spokesman for the US PC giant, but he played down the impact.
"HP works with a variety of companies to manufacture its displays and we are working aggressively with these partners to avoid any potential supply interruptions to our customers," said the vendor in a statement.
There are 20 different displays in HP’s portfolio but it refused to reveal which ones were manufactured by Lite-On.
The spokesman added it expected any issues to be fully resolved within weeks.
Most of Lenovo’s supply from Lite-On for this quarter is already in transit, the PC manufacturer told MicroScope last week.
"Beyond that, we are reviewing our options to make sure there are no long term consequences for Lenovo," said a spokeswoman, adding it would secure supply from third party vendors if necessary.
Dell said it worked with multiple suppliers including LiteOn but refused to comment about individual relationships. Acer said it did not expect a problem with monitor shortages.
The factory was set up under the corporate name Titanic Capital Services — an affiliate of the Lite On group — Lite On Technology indicated in its filing.
