Sony has contracted Hon Hai to supply eight million TVs while Sharp has designated the contract supplier to ship 1.5 million TVs this year. Hon Hai has acquired many of Sony's overseas factories and bought into Sharp in order to secure steady contracts with the two brand name suppliers.

People say Hon Hai is likely to acquire Sharp's TV factories in mainland China, Indonesia and Mexico to expand its contract TV manufacturing capacity.

Sharp plans to deliver 12-13 million TVs this year while Sony projects to ship 19 million TVs. Both companies will ramp up outsourcing.

As Hon Hai is the primary recipient of the contracts, other contract suppliers like Wistron Corp. are estimated to receive reduced number of contracts from the two companies. Wistron is projected to ship 4.8 million TVs this year, around half the number it shipped last year.

Hon Hai is posing a challenge to the world's No.1 contract supplier TPV Technology Corp. with the bright shipment estimate. TPV shipped 13-14 million LCD TVs last year to big-name suppliers including Philips, Sony, Vizio, Best Buy, TCL and Skyworth. Its 2012 shipment is projected at 15 million systems.

Compal Electronics Inc. has put its 2012 shipments of LCD TVs at eight million systems mostly thanks to contracts from Toshiba, which will increase outsourcing to 70% of its output this year.