Recession hits communication products sector in Taiwan

According to the China Post dated 31st of August. Taiwan's communication equipment production has recently recorded its first recession since 2002, with the output value for the first half of this year registering a decline of 5.4 percent over the same period of 2006, according to statistics released yesterday by a non-profit research center.

Recession hits communication products sector in Taiwan
The statistics, compiled by the Industrial Economic and Knowledge Center (IEK) under the Industry Technology Research Institute, show that the communication equipment manufacturing sector's production totalled NT$317.5 billion for the period.

IEK analyst Wu Yu-ju said the industry enjoyed significant growth in output in 2002 due to fast-growing demand for wireless products. The trend contributed to a steady expansion of the sector over the past five years, she added.

In 2006, it flourished again, thanks to a boom in mobile phone OEM orders, as well as the impact of the Taiwan-based BenQ Group's takeover of the mobile phone department of Germeny-based Siemens, one of the world's leading manufacturers in electrical engineering and electronics, Wu said.

However, the good days failed to last, Wu went on, saying that the output of mobile phone OEM factories fell by 36.1 percent in the first half of this year compared with the same period of 2006 -- from 67.77 million units to 43.16 million units.

The mobile phone sector generated an output value of NT$95.2 billion between January and June, down from NT$159.5 billion for the same period of 2006, according to Wu. In Contrast, the global positioning system (GPS) production industry posted booming growth in the first six months of the year, with the output registering a rise of 69.7 percent over the same period of 2006 to reach NT$71.8 billion.

The output of personal navigation devices took the lion's share of the total output of the GPS sector at 79 percent, according to the IEK.

Monday, September 3rd 2007
Alexandre Saltiel

Nav & Telematics | Sport and Outdoor | Location Based Services | Tech & Innovation | Market Data | Finance & Legal | People and Jobs | Voices of the industry | Press Releases