Taiwan-based ODM Compal Electronics on October 28 announced it will acquire Toshiba Television Central Europe (TTCE), Toshiba's LCD TV assembly factory in Wroclaw, Poland, for US$25 million, with the sales transaction to be finished by the end of the first quarter of 2014.

　　Compal will set up a wholly own Europe-based subsidiary, tentatively named Compal Europe Holding, and then have the subsidiary acquire a 100% stake in TTCE, Compal indicated. With the factory having a monthly production capacity of one million LCD TVs, the acquisition can enhance Compal's existing cooperation with Toshiba and help it compete for more ODM orders from other LCD TV vendors, the company pointed out. Following the acquisition, Toshiba will continue procurement of LCD TVs to be made at the factory, Compal said.

　　Toshiba is currently Compal's largest ODM client for LCD TVs, accounting for about 50% of Compal's ODM production, according to players in the Taiwan-based supply chain. Due to strong competition from South Korea- and China-based vendors, Toshiba has downwardly adjusted its 2013 target shipments from 10 million LCD TVs originally to 8-9 million units, the sources indicated. In addition to Compal, Toshiba's LCD TV ODMs include Taiwan-based Pegatron and Turkey-based Vestel, the sources noted. In order to minimize LCD TV production costs, Toshiba plans to increase ODM orders but reduce the number of ODMs and therefore Compal's acquisition of the factory is possibly motivated by securing steady ODM orders from Toshiba, the sources pointed out.

　　Compal shipped 2.4 million LCD TVs to ODM clients during the first three quarters and is expected to ship 3.0-4.0 million units in 2013, the sources noted.