Transcript Taiwan IT Industry in 2000 and Beyond

The Taiwan ICT Industry Outlook
Paulo S. Su
Manager
[email protected]
Market Intelligence Center
Institute for Information Industry
http://mic.iii.org.tw/english/
Current Status
 A major procurement center for global
IT companies
 World’s fourth largest IT hardware
producer
 Ranked first in market share for >10
products
 Dominates IT production in PRC China
 Fourth largest semiconductor industry
in the world
 Rapid growth of LCD industry
production
 106% mobile phone penetration rate
Taiwan Inside Partnering with The World
The Speed of Production
 a Motherboard per 0.374 second
 a CD-ROM Driver per 0.467 second
 a Monitor per 0.506 second
 a Desktop PC per 1.140 second
 a Scanner per 1.162 second
 a Notebook PC per 2.482 second
By estimation, 75% of PCs installed in the world with Windows® OS are produced by
Taiwanese IT Companies. That’s why “Taiwan Inside®” would probably be the most suitable
description of Taiwan’s vitality and its position in the worldwide IT Industry.
Source: MIC/III, IDB
Taiwan ICT Industry Statistics
Source： MIC/III, OCIID/MOEA, May 2003
The Taiwan ICT Industry WW
Production Share at a Glance
100
Worldwide production volume share %
1998
90
1999
2000
2001
80
70
60
50
40
30
20
10
0
Sc
er
n
an
b
Hu
l
a
An
og
m
e
od
M
Mo
b
t
r
he
r
oa
Ca
Source: MIC, December 2001
d
b
le
M
em
d
o
C
ch
or
PC
PC
ge
NI
t
t
a
i
p
k
r
ni
Sw
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te
De
al
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The Global Market Share of Taiwan’s
PC Networking Products
100%
2000
76%
75%
64%
2001
73%
2002
71%
67%
79%
73%
70% 70%
66%
55%
65% 66%
51%
46%
50%
39%
39%
34%
27%
25%
18%
15%
0%
NIC
WLAN
Switch
SOHO Router
Analog Modem
xDSL Modem
Cable Modem
Source: MIC, December 2001
 The OEM order of NIC, WLAN, SOHO Router and Cable Modem products is
stable and continuous. The global market share quickly rose to above 70%
 The primary source of LAN product value come from WLAN、Switch、SOHO
Router
 xDSL Modem replaced Analog Modem to become the most important part of
WAN products.
Wireless Communications Industry
 Current Status
Production Forecast
18
16
US$B
16
14
12
10
8
6
4
2
0
1.46
1.69
2.77
0.55
1999 2000 2001
2002 2002 2003
99
Forecast includes mobile phone production value
1999
2001
Source : OCIID/ MOEA
2006(f)
 Mobile phone the primary product In 2002
Production value： US$1.96 b
Production volume：28.8 M units
 WLAN and Bluetooth related production values
experiencing gradual growth
 Vision
 By 2006：Top supplier for mobile phones
Production value：US$16 B
Production volume： 260 M units
 Development Strategy
 Focus on strategic products, e.g. mobile phone,
GPS, WLAN, Bluetooth modules, and
applications content
 Establish key components industry for wireless
communications
WW ICT Industry Domestic
Production Value Ranking
1999
2000
2001
2002
US$Millions
2001 to 2002 Growth
United States
89,055
85,523
70,995
70,296
-1.0%
China
18,455
25,535
28,174
35,225
25.0%
Japan
48,279
52,153
39,204
31,488
-19.7%
Taiwan
21,023
23,081
20,124
17,348
-13.8%
Singapore
16,765
16,395
13,898
14,414
3.7%
UK
13,710
12,121
12,045
12,316
2.2%
Korea
7,427
11,856
9,837
12,180
23.8%
Germany
7,512
8,815
8,149
8,270
1.5%
Mexico
7,500
9,400
8,211
8,246
0.4%
Malaysia
6,105
7,395
6,619
6,856
3.6%
Ireland
6,757
6,470
6,654
6,777
1.8%
France
5,763
5,618
5,624
5,733
1.9%
Source: JEITA, The Yearbook of World Electronics Data, EIAK, MIC, November 2002
Note 1: IT hardware production values include computer systems and peripherals
Note 2: As data used in “The Yearbook” was drawn from each country’s customs statistics,
transit trade was included.
Note 3: The above information was adjusted to conform with the yearbook’s revised product
definitions and country statistics.
Taiwan ICT Hardware Industry
Global Deployment
2002
2001
Others
16.8%
Others
16.0%
PRC
36.9%
PRC
46.9%
Taiwan
47.1%
Production Value
US$42,750 million
Source：MIC/III, January 2003
Taiwan
36.3%
Production Value
US$47,845 million
ICT Industry Competitiveness Survey
Japan, Korea and Taiwan
Average
Poor
Taiwan
0
Japan
1
2
Korea
3
10
5
0
4
Excellent
5
6
7
8
Source: Leading firms’ international purchasing offices in Taiwan, compiled by MIC, August 2001
Sample size: 25 companies
9
10
Taiwan is Global IPO One-Stop Shop
Top 20 IPO’s Procurement from Taiwan
13
2003(e)
New HP
COMPAQ
Sony
IBM
HP
DELL
APPLE
Others
13.0
2002
2001
8.7
2000
9.5
8.2
7.6
7.0
1999
4.2
5.6
1998
0
3.7
5
10
15
20
25
30
35
40
45
◆
TOP 10 US IPO─APPLE、CISCO、DELL、GATEWAY、HP、IBM、 INTEL、MOTOROLA、
SOLECTRON、VIEWSONIC
◆
TOP 5 Japanese IPO─FUJITSU、HITACHI、NEC、SONY、TOSHIBA
◆
TOP 5 European IPO─ACTEBIS、FUJITSU SIEMENS、NOKIA、PHILIPS、SIEMENS
Source： OCIID/MOEA, DEC 2002
50
The Vertical Labor Distribution
Logistic System
From China
Europe:6-8days
USA:5-7days
Europe
Market
From Taiwan
Europe:5-6days
USA:5days
Overseas
Branchs
Major
Brandnames
Asia
Pacific
Market
From China
Europe:25days
USA:14days
From Taiwan
Europe:25days
USA:14days
North
America
Market
Source：MIC/III，April 2003

The integration of a complete logistic system which includes sales, design, manufacturing,
procurement, warehousing supply logistic line to enable a efficient, cost effect operation make a
successful industry global deployment.

The major international brand name vendors at the consideration of cost reduction and global
operation are seeking the OEM with global logistic system capability as their partner. Taiwan IT
Industry are capable to win international vendors’ order and increase their competitiveness with
high level of global logistic management.
The Taiwan IT Hardware Industry
Major Products in 2002
K Units / US$Millions
Product
Production
value
2002-2001
Production
Value
Growth Rate
Notebook PC
13,922
13.8%
18,199
28.5%
Desktop PC
6,933
1.0%
24,740
-2.6
Motherboard
5,636
-0.2%
86,511
7.4%
Server
1,324
1.8%
1,485
7.6%
CDT Monitor
4,544
-13.3%
42,910
-7.1%
LCD Monitor
5,646
80.3%
18,254
102.7%
ODD
3,146
49.3%
79,409
52.7%
DSC
1,003
19.7%
8,753
10.2%
285
10.9%
149
18.3%
Projector
Source: MIC, December 2002
Production
Volume
2002-2001
Production
Volume
Growth Rate
Taiwan Major ICT Hardware Forecast
in Q4, 2003
Unit: Thousand piece, US$m
Products
3Q03
Volume
4Q03
Volume
4Q03/3Q03
Growth Rate
4Q03/4Q02
Growth Rate
Notebook PC
6,350
6,850
7.9%
41.6%
Desktop PC
7,457
7,935
6.4 %
7.3 %
Motherboard
28,430
32,450
14.1 %
37.3 %
Server
445
490
10.1 %
20.4 %
CDT Monitor
9,953
10,798
8.5 %
-9.5 %
LCD Monitor
8,692
10,136
16.6 %
62.3 %
LCD Panel
9,525
10,478
10.0 %
61.2 %
Projector
102.3
121
17.9 %
156.1 %
DSC
4,809
4,483
-6.8 %
95.6 %
ODD
26,226
29,395
12.1 %
36.7 %
Mobile Phone
9,953
13,745
38.1 %
24.0 %
Source: MIC/III, October/2003
The Taiwan IT Hardware Industry
Shipments by Area, 2001-2002
Total Global Shipment Value by
Area in 2001
Other
4.7%
Total Global Shipment Value by
Area in 2002
Taiwan
4.1%
China
6.7%
United
States
36.9%
Other
5.5%
Japan
13.8%
AsiaPacific
7.0%
Western
Europe
26.8%
Total Production Value: US$42.75 Billion
Source: MIC, December 2002
United
States
35.8%
Taiwan
3.3%
China
7.5%
Japan
12.1%
AsiaPacific
10.3%
Western
Europe
25.5%
Total Production Value: US$47.845 Billion
The Competitive Advantage
• Value to Strategic
Partnership
Mainland China
• Manufacturing
Base
• Greater China
Market
• Export to
Worldwide
Market
Source: MIC, December 2001
Taiwan
Global Companies
• Efficient Knowledge
Receptor and
Integrator
• Supporting Industry
Infrastructure
• Democratic regime
• Technology Transfer
• Co-Develop Products for
the Chinese and
Worldwide Markets
• Joint-Venture for Key
Components or
Infrastructure
• Cultural Homogeneity
• Heavy Investment in
China
• Chinese Network
New Opportunities
• Manufacturing
• Software
• Service
International R&D Centers
•Pervasive computing R&D center
•Life science R&D center
•Network service resource center
•IT product innovation center
•Mobile communication & service
development center
•Product development center
•.NET technology support center
Taiwan ICT Industry in 2008
 Global Leading Suppliers：
1st in IT Hardware *
1st in TFT-LCD
3rd in Semiconductor
 Major Supplier in 3G + Mobile Phone ，Largest
Wireless Terminal Product Supplier
 Major Chinese Digital Content Provider
 The international
companies are welcome
to joining our R&D
center project
* Including those manufactured overseas
Thank You for Your Attention
http://mic.iii.org.tw/english