IT hardware sector predicted to rebound

Taiwan's information-technology industry is showing signs of recovery from last year's slump with IT hardware production value set to jump some 15 percent over last year, a government-funded think tank said yesterday.

"We estimate by year's end the nation's information-technology hardware production value will reach US$50 billion, up from last year's US$42.7 billion," said Victor Tsan (詹文男), managing director of the Market Intelligence Center (MIC, 市場情報中心) under the Institute for Information Industry.

However, the figure is only a slight uptick in comparison with US$47 billion in production value in 2000.

"In 2002 the sector is recovering rather than booming," Tsan said.

The rebound will be led by three computer peripheral products -- liquid crystal displays (LCD), rewriteable compact discs (CD-RW) and digital still cameras.

MIC reported during the first quarter this year, the LCD-monitor sector posted the highest growth rate in the IT market, a 188 percent jump in production value over the same period last year, followed by a 70 percent growth rate for CD-RWs and a 47 percent growth rate for digital cameras.

With these three markets just starting to take off, the global penetration rate of using digital cameras, LCD monitors and CD-RWs should continue to expand for the next couples of years, Tsan said.

"Taiwan's IT production business may reach another high with these opportunities," he said.

Tsan made these remarks at the opening of Computex Taipei 2002 yesterday, regarded as an important opportunity to boost sales.

"Most companies in the sector can't afford not showing up at the show as they might miss out on securing numerous orders during the event," said Chao Yuen-chuan (趙永全), vice president of China External Trade Development Council (CETRA, 外貿協會) and co-host of the event.

Compared with other major computer shows, such as CeBit in Germany and Comdex Fall in Las Vegas -- which showcase prototype products -- Computex focuses on "doing business," Chao said. "Buyers come to the event from all over the world."

Computex Taipei is expected to attract more than 25,000 foreign buyers, up from last year's 23,000, Chao said.

Major domestic players such as Taiwan Semiconductor Manufacturing Co (台積電), AU Optronics Corp (友達光電) and Benq Corp (明基電通) already have stable demand, while second-tier companies need the show to gain orders, Chao said.

Another industry professional said brand recognition is what they try to sell at the show.

"In order to promote our new brand on the global stage, gaining major exposure during this world-class show is necessary," Jerry Wang (王文璨), a vice president of Benq said.

"We want to increase our brand awareness rather than sales."