HTC named as nation's premier technology firm

High Tech Computer Corp (HTC, 宏達電), the world's biggest maker of phones operating on Microsoft Corp's operating system, was named the nation's top technology company, according to a survey released yesterday.

Handset manufacturer Compal Communications Inc (華寶通訊) and digital camera maker Altek Corp (華晶科技), were the second and third ranked tech firms, according to the Info Tech 100 Taiwan list co-released by BusinessWeek and the Chinese-language bi-weekly Business Next (數位時代).

"Can anything stop HTC? Rivals like Motorola are offering some competition, but HTC's early lead and close ties with Microsoft have helped the former stay way ahead of the pack," BusinessWeek said in its current issue.

But with the recent acquisition of Dopod International Corp (多普達) -- a company that sells HTC-made phones and personal digital assistants under the "Dopod" brand -- some challenges are looming for HTC, the renowned business publication said.

"HTC has thrived by staying out of the brand name business. Will customers feel comfortable with HTC now a competitor as well as a supplier?" it asked.

Meanwhile, the nation's No. 4 and No. 5 tech outfits according to the survey were, respectively, Phoenix Precision Technology Corp (全懋精密), a semiconductor testing and packaging provider, and electronics maker Hon Hai Precision Industry Co (鴻海精密).

The Info Tech 100 Taiwan ranking was announced in line with the world's top 100 tech firms list conducted by BusinessWeek, where Hon Hai and HTC both made it into the world's top 10.

Both lists were focused on four indicators, namely total revenues, revenue growth, return on equity and shareholder return.

The average revenues of the Taiwan's top 100 firms hit NT$52.6 billion (US$1.62 billion), up 26.5 percent from NT$41.5 billion last year. However, average after-tax net income slipped by 22 percent to NT$4.12 billion from NT$5.04 billion.

The average sales growth of these firms was 45.7 percent, return on equity was 110 percent, and shareholder return at 24 percent, according to the survey.

One of the noteworthy trends of the survey is the rise to the top five of corporations that produce portable and related products, Business Next said.

These new rising stars are Compal Communications, handset chip maker MediaTek Inc (聯發科), camera lens maker Largan Precision Co (大立光), light-emitting diodes manufacturer Everlight Electronics Co (億光), and Motech Industries Inc (茂迪科技), a solar cell maker.

"In the past, electronics makers who produced computers carved the name of Taiwan on the global tech industry, but these five new companies are poised to bring the nation's tech landscape to greater heights," Business Next said in a statement.

These firms -- with their handsets, digital cameras and other compact products do not face long product cycles. Computer manufacturers frequently would have to wait three-to-five years between each demand wave to build sales.