Tue, Oct 10, 2006 - Page 12 News List

Electronics companies gear up for a busy Q4

By Jason Tan  /  STAFF REPORTER

Taiwan Electrical and Electronics Manufacturers' Association chairman Rock Hsu, left, Premier Su Tseng-chang, center, and Minister of Economic Affairs Steve Chen watch a locally developed 3D television at the ``Taitronics Autumn 2006'' exhibition yesterday.

PHOTO: FANG PIN-CHAO, TAIPEI TIMES

The nation's electronics firms are gearing up for a busy fourth quarter, which is traditionally the peak season for the booming sector, according to local companies and a trade association.

"We are now churning out products for some major projects that we signed contracts for as early as last year," said Arthur Liang (梁穎臨), sales director of Powertip Technology Co (久正光電).

Liang made the remarks at the company's booths at "Taitronics Autumn 2006," one of the largest electronics trade shows in Asia, which opened yesterday at the Taipei World Trade Center.

These new shipments are expected to lift Powertip's fourth-quarter sales by as much as 40 percent compared with the same period last year and by 20 percent over the last quarter, he said.

The Taichung-based Powertip mainly supplies small-sized liquid-crystal-display (LCD) modules -- ranging from 1.5 inches to 2.8 inches -- for cameras, handsets and MP3 players,

Last year, it started to move into mid-sized LCD modules for industrial equipment, with panel sizes going up to 7 inches.

"Factories are always investing in equipment to expand operations," Liang said, adding that the company has seen a gradual increase in orders from industrial clients.

The Taiwan Electrical and Electronics Manufacturers' Association (TEEMA, 電電公會) projected last week that industry output in the fourth quarter would grow 20 percent over last year, thanks to the strong demand for chips and panels.

TEEMA, which represents more than 4,000 local firms, said total output for the year was poised to increase 15 percent from last year's US$170.8 billion.

Local firms are bracing for a hectic season ahead as two-thirds of the entire year's sales are typically generated during the second half of the year, it said.

Shin Chin Industrial Co (新進工業), a manufacturer of electronics and auto parts, echoed this optimism.

"Our sales in the fourth quarter will grow as much as 15 percent over last year, and grow 10 percent from the third quarter," said Sophie Ho (何素慧), Shin Chin' s sales and marketing manager.

The Tainan-headquartered firm has been investing 5 percent of annual sales to beef up its research and development division, which has more than 20 engineers working in Taiwan and China.

The company, which derives half of its sales from switchers used in home electronics and industrial machines, recently introduced car interior lamps using light-emitting diodes (LEDs) backlighting.

"Competition in the industry is tough, and we have to find our niche. This [LED car lamp] should give us better pricing power," Ho said.

Ending on Friday, this year's Taitronics features 1,100 vendors occupying 2,600 booths, down compared with last year's 1,276 firms and 2,922 booths.

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