Components, chips lead sector

Key electronics component makers and chip designers are the two star industries among the nation's top 100 tech companies, a study showed yesterday.

Thirty-nine key component makers and nine chip designers were included on the "2007 Info Tech 100 Taiwan" list released by the Chinese-language bi-weekly Business Next (數位時代) yesterday.

"The message is strong on this year's list that the competitiveness of Taiwan's tech industry has shifted from assembling to the upstream component area," it said.

The top firms this year all churn out "small products," it said.

The top company on the list, Foxconn Technology Group (鴻準精密), is a light metal casing supplier, while second place went to Phison Electronics Corp (群聯電子), a universal-serial-bus (USB) control chip maker.

WPG Holdings Co (大聯大), third on the list, is a chip distributor, and Transcend Information Inc (創見), in fifth place, produces memory modules and USBs.

Small components from these enterprises offer "flexibility, simplicity and portability to most consumer electronics," Business Next said.

The rankings, jointly conducted with BusinessWeek, were based on four indicators: total revenues, revenue growth, return on equity and shareholder return.

Hon Hai Precision Industry Co (鴻海精密), the world's top electronics parts maker, fell from the No. 5 slot last year to No. 8 this year, while Asustek Computer Inc (華碩電腦), the world's largest motherboard maker, dropped five places to No. 27.

The two IT heavyweights are examples of assemblers beefing up downstream and upstream integration, the magazine said.

"Assemblers are seeking opportunities in consumer products to expand revenue growth and, at the same time, acquiring upper stream component makers to strengthen their products," it said.

The ranking also revealed the competitive nature of the nation's high-tech landscape, with 50 new names on the list this year -- a new record in the list's eighth year.