The near-term outlook for the nation's tech sector remains upbeat, supported by increasing spending on technology products among companies next year, industry watchers said yesterday. \nThe high-tech industry has seen consumers as the industry's backbone, while cautious enterprises have been holding back spending despite improvements in margins, Peter Sutton, head of research with CLSA Ltd's Taipei branch, said at a luncheon held yesterday by the European Chamber of Commerce Taipei. \n"This could be a good sign ?[indicating] a huge potential for growth next year and decline in tech investment is unlikely," Sutton said. \nHe predicted a rather conservative single-digit growth rate between 5 percent and 9 percent for next year. \nWAFERS \nThe research house projected overall wafer capacity to grow by 10 percent next year while demand could increase by 8.4 percent at the same time, indicating a very mild oversupply. \nThe prices of dynamic random access memory (DRAM) chips are expected to decline by 15 percent quarter-on-quarter for the next three, due to the weaker personal computer sector, according to CLSA. \nCOMPUTERS \nShipments of global desktop com-puters next year is estimated to reach 149.4 million units with a growth rate of 8 percent and 158.6 million units with a growth rate of 6 percent in 2006, down from 10 percent this year, CLSA said. \nThe growth of portable computer shipments would also slow down from 16 percent this year to 15 percent, with 51.06 million units next year and 14 percent with 58.21 percent in 2006, according to the securities house. \nSince the PC sector has seen extra growth, further growth opportunities for this country are in the handset and consumer electronics sectors, which have more decent margins from a long-tern perspective, Sutton said. \nCHINA FACTOR \nWhile Taiwan is being encouraged to transform, another market watcher said the nation still leads the dance in the face of China, a new follower chasing behind in the high-tech arena. \nChina enjoyed a large number of engineering graduates every year but is dearth of management talent, said Mike Clendenin, Taiwan and China bureau chief of Electronic Engineering Times. \nAlthough most of the products manufactured in China are low end and low margin, it has showed the signs of complexity and progress in access to capital and technology, Clendenin said. \nHe urged Taiwan to take China as an opportunity rather than a threat. He said that there are no alternatives for Taiwan but to seek cooperation for sustainable development.
BULK PURCHASE: The French chain and Hong Kong-based Dairy Farm International reached a deal covering 224 stores, which is expected to be finalized by year’s end Carrefour SA yesterday announced it would acquire Wellcome Taiwan Co (惠康百貨) for 97 million euros (US$108.33 million), and bring all the Wellcome supermarkets (頂好超市) and Jasons Market Place stores nationwide under its banner within 12 months of the deal closing. The France-based hypermarket chain reached an agreement with Hong Kong-based Dairy Farm International Holdings (牛奶國際控股), the pan-Asian retailer that launched Wellcome Taiwan in 1987. The transaction involves 199 Wellcome supermarkets, which have average sales areas of 420m2 and 25 high-end Jasons Market Place stores, which have an average sales area of 820m2, as well as a warehouse in Taoyuan, Carrefour Taiwan (家樂福)
‘ONE-STOP SHOP’: A Miaoli official said that the factory in the Jhunan section of the Hsinchu Science Park would create more than 1,000 jobs and boost prosperity A new high-end IC packaging and testing plant planned by contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) in Miaoli County is expected to start operations in the middle of next year, Miaoli County Commissioner Hsu Yao-chang (徐耀昌) said. Hsu wrote on Facebook that TSMC, the world’s largest pure wafer foundry operator, would invest NT$303.2 billion (US$10.1 billion) to build the plant, the largest-ever single investment in Taiwan. However, TSMC declined to disclose the financial terms of the deal, while a company board meeting on May 12 approved a spending plan worth NT$168.2 billion as part of its investment plans. Construction of the
SCATTERED: Production would be dispersed among a number of countries, which would bring an end to so-called world factories, Hon Hai chairman Young Liu said Decentralized production would be the new focus in manufacturing, Hon Hai Precision Industry Co (鴻海精密) chairman Young Liu (劉揚偉) yesterday told an online forum held by the Market Intelligence & Consulting Institute (MIC, 產業情報研究所). “The COVID-19 pandemic exerted a heavy impact on supply chains as well as production ... [production] would no longer be concentrated in solely one country, this is the end of what we used to call world factories,” Liu said during a panel discussion hosted by MIC director Victor Tsan (詹文男). As the US and China continue to dominate and sway international relations, the rest of the world is
PLANNED OUT: The government is lifting sale and export restrictions on 60% of the 20 million masks made daily, but people can still make purchases using their NHI cards Twenty thousand boxes of 50 masks each would be on sale at FamilyMart convenience stores starting tomorrow, Taiwan FamilyMart Co Ltd (全家便利商店) said yesterday. A box of 50 masks would cost NT$249 for those with FamilyMart memberships and NT$299 for those without, with no limits placed on how many boxes a person can buy, the company said. Convenience store chain operator Hi-Life International Co Ltd (萊爾富) said that it would also start selling masks from tomorrow. It has yet to announce details about prices and quantity. Hypermarket chain operator Carrefour Taiwan (家樂福) said that it would start selling packs of five