Business turnover in the local information technology (IT) industry this year is expected to rise between 20 percent and 30 percent from last year, a spokesman for the Taipei Computer Association (TCA,
TCA president Wang Jeng-tang (王振堂) made the forecast after saying that local notebook and personal computer manufacturers should be able to maintain stable growth in the fourth quarter of this year and the first quarter of next year.
Wang cited notebook computer manufacturers as an industry that is likely to be affected by the implementation of the Chinese government's Labor Contract Act, which is expected to enter into force on Jan. 1.
It is generally believed that the act will increase the cost of employing Chinese laborers, which would raise costs for Taiwanese manufactures operating in China.
However, Wang pointed out that all notebook computer manufacturers would face the same pressure, because they have all set up factories in China.
For this reason, Wang said it was quite unlikely that these manufacturers would lower product prices while their costs go up.
"Maybe in the future they will raise their selling prices a little," Wang said, describing the impact of the Chinese action as "limited" and "not necessarily negative."
Asked if computer manufacturers would shift production sites to other countries to cope with rising labor costs, Wang said that infrastructure construction takes time.
"It will take these manufactures at least a year or two before they leave China," he said.
He also said that Taiwan produces up to 80 percent of the world's laptops and that no country can compete in that regard.
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