Top PC firms at risk from Taiwan monitor maker fire

By Sheena Lee

TAIPEI, Feb 12 (Reuters) - A fire at Taiwan's Lite-On (2301.TW: Quote, Profile, Research, Stock Buzz), the world's fifth largest desktop monitor producer, could disrupt supplies to the PC industry, with Dell (DELL.O: Quote, Profile, Research, Stock Buzz), HP (HPQ.N: Quote, Profile, Research, Stock Buzz) and Lenovo (0992.HK: Quote, Profile, Research, Stock Buzz) particularly at risk, an industry researcher said on Tuesday.

The fire at one of Lite-On's factories in China this month had caused initial damage of around T$2.266 billion ($71 million). The company said no one was hurt in the incident.

Lite-On Technology, which makes flat-screen monitors, projectors and computer equipment, said the losses included structural damage of a building, and damage to some equipment and stocks.

Fourteen production lines of liquid crystal display (LCD) monitors were also interrupted, the company said in a statement.

The factory, located in the southern Chinese city of Dongguan, caught fire after an electrical line short circuited.

"This could have a major impact on the landscape of the desktop monitor industry in the first and second quarters of 2008, but most probably in regards to share shift rather than in overall supply and demand," said DisplaySearch analyst Chris Connery in a report.

He added that Dell, HP and Lenovo -- Lite-On's top contract partners -- could suffer from supply distruption.

But Connery added that if the Taiwan firm outsources its own production to local competitors or if the PC companies switch to Lite-On competitors the damage could be limited.