Tsann Kuen Group (燦坤), Taiwan's largest electronics chain store in terms of annual sales, said yesterday that it intends to expand its presence in China's burgeoning electronics and home appliance market.
The company also plans to develop its original equipment manufacturing (OEM) business, through which it produces products that Taiwan's branded home appliance enterprises sell under their own brand names. Tsann Kuen will decrease production of its own brand, Eupa.
"Eyeing the estimated 7-percent GDP growth in China," said Wu Tsann-kuen (
"By expanding our OEM business, we want to provide more products to our clients and utilize our strengths to help Taiwanese brands make inroads into China's market," Wu said.
Tsann Kuen has set up a 1.6 million square meter factory in Fujian Province's Zhangzhou. The plant is capable of churning out 500,000 small home appliances a day.
The company manufactures products for many international branded companies, including the US clients George Foreman Grill and Starbucks. The company is also working on signing OEM contracts with Taiwanese home appliance brands like Tatung Co (
"We aim to create annual sales of NT$80 billion in 2004 and NT$400 billion by 2009, with 1000 outlets on both sides of the Taiwan Strait," Wu said.
The group generated a turnover of NT$37 billion in 2003, an increase of about 40 percent compared to the previous year.
It hopes to expand its number of outlets to more than 160 in Taiwan and 100 in China's eastern and northern regions by the end of this year.
The NT$230 billion market in Taiwan has encountered stagnant growth recently, while China is growing due to strong first-time purchases of electronics products, said Richard Yu (余敬倫), CEO at Tsann Kuen's retail business.
An analyst said that the group was right to emphasize its OEM products.
"Even spending a huge amount of money to advertise its own brand might not assure Tsann Kuen of the ability to compete with renowned international companies," said Chen Yen-liang (陳彥良), an analyst at Yuanta Core Pacific Capital Management (元大京華).
SEEKING CLARITY: Washington should not adopt measures that create uncertainties for ‘existing semiconductor investments,’ TSMC said referring to its US$165 billion in the US Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) told the US that any future tariffs on Taiwanese semiconductors could reduce demand for chips and derail its pledge to increase its investment in Arizona. “New import restrictions could jeopardize current US leadership in the competitive technology industry and create uncertainties for many committed semiconductor capital projects in the US, including TSMC Arizona’s significant investment plan in Phoenix,” the chipmaker wrote in a letter to the US Department of Commerce. TSMC issued the warning in response to a solicitation for comments by the department on a possible tariff on semiconductor imports by US President Donald Trump’s
‘FAILED EXPORT CONTROLS’: Jensen Huang said that Washington should maximize the speed of AI diffusion, because not doing so would give competitors an advantage Nvidia Corp cofounder and chief executive officer Jensen Huang (黃仁勳) yesterday criticized the US government’s restrictions on exports of artificial intelligence (AI) chips to China, saying that the policy was a failure and would only spur China to accelerate AI development. The export controls gave China the spirit, motivation and government support to accelerate AI development, Huang told reporters at the Computex trade show in Taipei. The competition in China is already intense, given its strong software capabilities, extensive technology ecosystems and work efficiency, he said. “All in all, the export controls were a failure. The facts would suggest it,” he said. “The US
The government has launched a three-pronged strategy to attract local and international talent, aiming to position Taiwan as a new global hub following Nvidia Corp’s announcement that it has chosen Taipei as the site of its Taiwan headquarters. Nvidia cofounder and CEO Jensen Huang (黃仁勳) on Monday last week announced during his keynote speech at the Computex trade show in Taipei that the Nvidia Constellation, the company’s planned Taiwan headquarters, would be located in the Beitou-Shilin Technology Park (北投士林科技園區) in Taipei. Huang’s decision to establish a base in Taiwan is “primarily due to Taiwan’s talent pool and its strength in the semiconductor
French President Emmanuel Macron has expressed gratitude to Hon Hai Precision Industry Co (鴻海精密) for its plan to invest approximately 250 million euros (US$278 million) in a joint venture in France focused on the semiconductor and space industries. On his official X account on Tuesday, Macron thanked Hon Hai, also known globally as Foxconn Technology Group (富士康科技集團), for its investment projects announced at Choose France, a flagship economic summit held on Monday to attract foreign investment. In the post, Macron included a GIF displaying the national flag of the Republic of China (Taiwan), as he did for other foreign investors, including China-based
RSS