LCD TV vendors in Taiwan have started to increase their inventory levels and are expected to raise TV prices at the end of May amid increasing panel prices, according to market sources.

LCD TV sales in April in the Taiwan market increased 10% on year, with Chimei ranked first with shipments of 11,400 LCD TVs, the sources noted.

Teco came in second with shipments of 11,300 LCD TVs, of which 5,000 were 22-inch models, the sources said, adding that Teco has cut the price of its 22-inch LCD TVs to NT$6,999 (US$212.1) in an attempt to gain share in the local market.

The sources indicated that increasing panel prices are expected to drive up 22-inch LCD TVs to NT$8,490 at the end of May from NT$NT$7,999 currently.

BenQ was third with shipments of 8,700 LCD TVs as the company reduced 37-inch model prices to below NT$17,000, the sources added. Sony shipped 8,400 LCD TVs to take fourth place in the Taiwan market, followed by LG Electronics in fifth place with 8,000 units.