The Taiwan ICT Industry Outlook

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The Taiwan ICT Industry Outlook

• Paulo S. Su
• Manager
• sarvesh_at_iii.org.tw
• Market Intelligence Center
• Institute for Information Industry
• http//mic.iii.org.tw/english/

2
Current Status

• A major procurement center for global IT
  companies
• Worlds fourth largest IT hardware producer
• Ranked first in market share for gt10 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

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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. Thats why Taiwan Inside would
probably be the most suitable description of
Taiwans vitality and its position in the
worldwide IT Industry.
Source MIC/III, IDB
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Taiwan ICT Industry Statistics

Source MIC/III, OCIID/MOEA, May 2003
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The Taiwan ICT Industry WW Production Share at a
Glance
Worldwide production volume share
Source MIC, December 2001
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The Global Market Share of Taiwans PC Networking
Products

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.

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Wireless Communications Industry

• Current Status
• Mobile phone the primary product In 2002
• Production value US1.96 b
• Production volume28.8 M units
• WLAN and Bluetooth related production values
  experiencing gradual growth
• ? Vision
• By 2006Top supplier for mobile phones
• Production valueUS16 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

Production Forecast

USB
2002
2003
2002
1999
2000
Forecast includes mobile phone production value
1999
2001
2006(f)
Source OCIID/ MOEA
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WW ICT Industry Domestic Production Value Ranking
USMillions
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 countrys
customs statistics, transit trade was
included. Note 3 The above information was
adjusted to conform with the yearbooks revised
product definitions and country statistics.
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Taiwan ICT Hardware IndustryGlobal Deployment
2001
2002
Production Value US42,750 million
Production Value US47,845 million
SourceMIC/III, January 2003
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ICT Industry Competitiveness SurveyJapan, Korea
and Taiwan
Average
Poor
Excellent
Taiwan
Japan
Korea
10
5
0
Government Incentive
RD Resources
Infrastructure
Quality
Time to Market
Logistics
Delivery Lead Time
Flexibility
Price
0
1
2
3
4
5
6
7
8
9
10
Source Leading firms international purchasing
offices in Taiwan, compiled by MIC, August
2001 Sample size 25 companies
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Taiwan is Global IPO One-Stop Shop
Top 20 IPOs Procurement from Taiwan

? TOP 10 US
IPO-APPLE?CISCO?DELL?GATEWAY?HP?IBM?
INTEL?MOTOROLA?
SOLECTRON?VIEWSONIC
? TOP 5 Japanese IPO-FUJITSU?HITACHI?NEC?S
ONY?TOSHIBA ? TOP 5 European
IPO-ACTEBIS?FUJITSU SIEMENS?NOKIA?PHILIPS?SIEMENS
Source OCIID/MOEA, DEC 2002
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The Vertical Labor Distribution Logistic System

SourceMIC/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.

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The Taiwan IT Hardware Industry Major Products
in 2002
K Units / USMillions
Source MIC, December 2002
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Taiwan Major ICT Hardware Forecastin Q4, 2003
Unit Thousand piece, USm

Source MIC/III, October/2003
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The Taiwan IT Hardware Industry Shipments by
Area, 2001-2002
Total Global Shipment Value by Area in 2002
Total Global Shipment Value by Area in 2001

Total Production Value US47.845 Billion
Total Production Value US42.75 Billion
Source MIC, December 2002
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The Competitive Advantage

• Global Companies
• Technology Transfer
• Co-Develop Products for the Chinese and Worldwide
  Markets
• Joint-Venture for Key Components or Infrastructure

• Taiwan
• Efficient Knowledge Receptor and Integrator
• Supporting Industry Infrastructure
• Democratic regime

• Value to Strategic Partnership

• Mainland China
• Manufacturing
• Base
• Greater China
• Market
• Export to
• Worldwide
• Market

• New Opportunities
• Manufacturing
• Software
• Service

• Cultural Homogeneity
• Heavy Investment in China
• Chinese Network

Source MIC, December 2001
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International RD Centers

• Pervasive computing RD center
• Life science RD center
• Network service resource center

• IT product innovation center

• Mobile communication service
• development center

• Product development center

• .NET technology support center

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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 RD center project

An Important Partner in the Globalization Era
Including those manufactured overseas
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Thank You for Your Attention
http//mic.iii.org.tw/english