With the majority of its production in China and its headquarters in Taiwan, Lite-On Group (光寶集團) is a prime example of the government's "leaving roots in Taiwan (根留台灣)" while expanding in China policy.
The vast majority of Lite-On's production is in China, and the China market is its main source of revenue, Lite-On executives said.
"Seventy percent of Lite-On's revenue is generated in China," said David Lin (
"However, these products first go through a test-production phase in Taiwan which is then followed by mass production in China," Lin said.
The current recession has so far not damaged Lite-On's revenue stream, said Raymond Soong (宋恭源), chairman of the group.
"While many international companies have responded to the glogal economic slowdown with profit warning, at Lite-On we anticipated the slowdown and adjusted our investment strategies early on," Soong said.
"For 2001 we have set a revenue target of NT$140 billion, and revenue received from the first five months of this year -- NT$44 billion -- means we are on track to reach our target.
"Over the past 10 years we have enjoyed a compounded annual growth rate of 25 percent. Last year Lite-On Group earned revenues of NT$130 billion, a 45 percent growth over the previous year with profits growing 110 percent from 1999, which reached NT$7 billion."
Lite-On also places a considerable amount of resources into R&D and recently sponsored an industrial design contest.
"Innovation and service have always been at the core of Lite-On's business spirit," Soong said. "During the past 20 years we have spent considerable time and effort on research and development of new technology, with the intention of improving the quality of life of our customers.
"This year the group has invested NT$3.3 billion in research and development -- a growth of 30 percent over the year 2000. But we felt that this was not enough, so we decided to sponsor a contest for industrial designs by young students going into the field of technology. In this way we are hoping to plant the seeds of innovation in younger generations and help develop Taiwan's R&D resources."
The "Lite-On innovation awards" contest was launched at the end of last year. More than 400 entries were received from close to 1,000 students and teachers. The 30 best entries were on display at an awards ceremony last Friday.
Also featured at the event were products from Lite-on Group employees, including leading-edge designs from both the information technology and telecommunications markets, such as white-light LEDs, personal digital assistants (PDAs), monitors, wireless keyboards and mobile phones. A seminar on IT product design trends and a technology demonstration which included Lite-On's wireless Bluetooth technology were also given.
"In facing today's fierce competition -- both local and global -- the only way to maintain a leading role is through continuous innovation and unrelenting research and development," Lin said.
"To retain its competitive edge, Lite-On has transformed itself from a peripheral PC manufacturer to developer of new personal computers, Internet appliances and telecommunications-related products.
"Lite-On's current roadmap is divided into four major product groups: PC peripherals and Internet application platforms, telecommunications and networking products, semiconductor and electronics components, and electronic-commerce products," Lin said.
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