The value of the nation's output of mobile phone handsets this year is expected to reach NT$3.62 billion, up sharply from last year's NT$190 million, according to a recent market research.
According to Computer and Communications Research Laboratories under the Industrial Technology Research Institute (
The nation's output has jumped significantly from just 35,000 handsets in 1998.
"[This year] marks the beginning of Taiwan's telecom industry boom," said Su Chien-yun (
"Such strong growth will continue pushing Taiwan's mobile phone handset output to at least 10 million units and NT$18.2 billion in product value in 2000."
Although the majority of mobile phone handsets currently produced by Taiwan makers are GSM models, the so-called "second generation" in the mobile phone industry, Su said some local companies are developing the next stage of phones, known as the "2.5 generation." These products are in the final stage of development, Su said, and are expected to hit the market soon.
"The first Taiwan-made 2.5-G mobile phone handset will make its debut in Taiwan next year and will soon go into mass production," Su said.
Companies currently mass producing mobile phone handsets include GVC Corp (致福), Acer Peripherals Inc (明基) and Dialer & Business Electronics Co Ltd (大霸).
Dialer manufactures handsets for Motorola through its Shanghai plant, while GVC and Acer Peripherals have their production lines set up in Taiwan. All three companies have begun expanding their production capacities to meet increased demand, thus brightening their output forecasts for next year, Su said.
In addition, several other local companies have moved into the wireless telecommunication industry, including Quanta Computer Inc (
Arima Group announced in September that it had successfully developed a GSM handset. Quanta said it would start mass production of mobile phone handsets next year.
Aside from GSM handsets, many local firms are developing 2.5-generation handsets. Acer Peripherals and First International Group (
So, too, have GVC, Compal, and Vidar-Sms Co Ltd (
In addition, many local companies will start producing handsets that enable users to surf the Web or take advantage of global positioning satellite technology -- thus enhancing Taiwan's competitiveness in the mobile phone handset market.
Although Taiwan had a late start in developing wireless telecommunication technology, and thus ranks behind Korea in terms of output, Su is confident Taiwan can catch up with its neighbor in the near future.
"All advantages that Korea has Taiwan has now, such as a close proximity to Japan and China and intelligent laborers," Su said.
"These factors will become big advantages for Taiwan makers. Motorola's decision to choose Acer Peripherals and Dialer as contractors may serve as a good example of Taiwan's strength in this field."
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