Amtran sees LCD shortage amid booming demand

* Expects LCD sector to face shortage of 32", 37" panels

* Own-brand TV shipments likely to double in Christmas week

* Sees company's LCD TV shipments up 80 pct in 2008, revenue up as much as 54 pct

By Baker Li

TAIPEI (Reuters) - Taiwan's Amtran (2489.TW), whose Vizio-branded LCD TVs are the top sellers in North America, said the LCD sector is likely to face a shortage of panels for popular models next year, as it forecasts an 80 percent jump in shipments.

The growing popularity of liquid crystal display televisions is likely to produce a shortage of panels for 32- and 37-inch models in the second half of 2008, Scottie Chiu, an Amtran director, told Reuters on Wednesday.

As consumers' appetite grows, Amtran aims to ship 80 percent more Vizio TVs globally next year, boosting revenue as much as 54 percent to T$100 billion ($3.1 billion) from this year's T$65 billion, Chiu said in an interview.

Next year's sales would beat a forecast for a 32 percent rise to T$85.8 billion, made by Reuters Estimates.

"There have been some worries about the subprime market but TV prices have come down to a level that most people can accept, so the market will be growing," Chiu said at a show room, where the company displays a line of shinny, monster LCD TVs.

It is virtually unknown to consumers before joining hands with its U.S. partner, Vizio Inc, in 2005 to penetrate the North America market.

With a low-price strategy and good manufacturing quality, Vizio TVs have proved a hit this year.

In North America, Vizio TVs had a market share of 13 percent in the third quarter, followed by big TV brand Samsung's (005930.KS) 12.8 percent, Sharp's (6753.T) 12 percent and Sony's (6758.T) 10 percent, according to market researcher iSuppli Corp.

Sales of its televisions in North America in the week of Christmas should be about double the level of normal weeks, when it ships 40,000 to 50,000 units, he added.

Consumers can shop Vizio TVs on the shelves of big retailers, including Wal-Mart Stores (WMT.N) and Costco (COST.O). The selling price of a 42-inch Vizio TV is about half of that of a similar model by Sony.

The Taiwan LCD TV maker, which buys panels from major LCD suppliers, such as Samsung and AU Optronics Corp (2409.TW) (AUO.N), gave the forecasts after the Taipei stock market closed on Wednesday, when its stock jumped 2.6 percent to T$33.40, in line with the big board's .TWII gain.

Citigroup put a "buy" rating on Amtran on its strong outlook. Some TV makers have also expressed interest in investing in Amtran, Chiu said. No details were given.

For next year, Amtran hopes to duplicate its success in North America to China by teaming up with retailers there, Chiu said but declined to identify potential partners.

A new labor contract law is likely to push up business costs in China next year but it seems not a concern for Amtran.

"The bulk of our costs are from panels and some IC components and labor cost make up only about 2 percent," Chiu said.

"The impact will be minor."

(Reporting by Baker Li; Editing by Nick Macfie)