Taiwan ICT Industry OutlookTaiwan ICT Industry Outlook
Keng LeeKeng LeeInstitute for Information Industry
Jan. 2011
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Outlines
Taiwan ICT status
Taiwan ICT Hardware/Software IndustryTaiwan ICT Hardware/Software Industry
Future Developments
When I meets T
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Open Innovation System
The Open Innovation System of Taiwan ICT Industry
OEM ODM OBM
R&D St t i AlliR&D St t i Alli
Vertically Integrated Vertically Integrated Industrial ClustersIndustrial Clusters
••R&D Strategic Alliance R&D Strategic Alliance between businessesbetween businesses
••Public R&D Program Public R&D Program Support & TechnologySupport & Technology
KnowledgeInnovationNetwork
Support & Technology Support & Technology TransferTransfer
Gov Stimulus Plans Gov Stimulus Plans SkillHuman Resource Education
Entrepreneurship ••Multinational Multinational R&D CentersR&D Centers
••Global SupplyGlobal Supply--Chain Chain GlobalizationI f ti
e-Connection(Logistics)
Central PlanC
Plan E Plan A
Plan D
Customer
Entrepreneurship
ManagementManagementInformation( g )
Central
Manufacturer
Plan BPlan E
Plan C
Supplier
Bank
Import & Export Payment
anAccouting
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Source: MIC/III, May. 2009.
Companies get recognitionBusinessWeek’s 2009 ranking of the tops in tech showcases companies that managed to thrive even
f fJune 1, 2009. in the face of a bruising global recession.
10
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Source: http://bwnt.businessweek.com/interactive_reports/it100_2009/?chan=magazine+channel_in+depth
ICT Worldwide RecognitionPublishing Institute Results
WEF (2009) Global Ranking: No.12T h l i l R di N 18-Global Competitiveness Index -Technological Readiness: No.18
WEF (2009)-Networked Readiness Index
Global Ranking: No.11-Individual/Business/Government Readiness: No. 22, 17, 8-Individual/Business/Government Readiness: No. 14, 6, 3
BERI (2010)-Profit Opportunity Recommendation
Global Ranking: No.4Asian Ranking: No.2
IMD (2010)-The World Competitiveness Yearbook
Global Ranking: No.8Asian Ranking: No.4
B U i it (2008) Gl b l R ki N 2Brown University (2008)-Global E-Government
Global Ranking: No.2(Analysis of 1,667 government websites in 198 different nations)
Waseda University (2009) Global Ranking: No.8-E-Government Ranking Asian Ranking: No.4
EIU (2009)-E-Readiness Rankings
Global Ranking: No.16Asian Ranking: No.5
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Source: WEF, BERI, IMD, Brown University(US), Waseda University(JPN), EIU, Compiled by MIC, May 2010
g g
Taiwan ICT Hardware/Software IndustryFuture Developments
When I meets TWhen I meets T
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Leading ICT products, made by Taiwan
P d t2009
W ld id P d t2009
W ld idProduct Worldwide Market Share
Product WorldwideMarket Share
Laptop 95 3% Cable CPE 93 0%Laptop 95.3% Cable CPE 93.0%
Motherboard 93.5% WLAN NIC 90.8%
Netbook PC 90.7% DSL CPE 65.0%
Server (System/MB) 88.7% IP Phone 54.0%
LCD Monitor 71 8% Taiwan Inside®71.8%
WLAN AP, Cable STB, ODD and DSC ranked 2nd , 2009
85% of PCs and 80% of data communications equipment, in the world are produced by Taiwan.
Taiwan Inside®
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Source: MIC/III, Mar. 2010.
85% of PCs and 80% of data communications equipment, in the world are produced by Taiwan.
IT Hardware Shipment ValueMillions USD Growth %
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Source:MIC/III , Mar. 2010
IT Hardware Shipment Area
2008 20092008 Worldwide shipment
by area
2009Worldwide shipment
by area
Taiwan1.8%NA
Others4.8% Taiwan
1.0%NA
Others9.8%
PRC8.9%
WE30 7%
36.7%PRC
14.8%WE
26.4%
31.5%
Japan9.0%
AP8.1%
30.7%
Japan6.1%AP
10.4%
Production Value:US$107,830M
Production Value:US$110,251M
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Source:MIC/III , Mar. 2010
Data Communications Shipment ValueMillions USD Growth %
A C S C C bl C C h
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Source:MIC/III , Mar. 2010WLAN NIC, DSL CPE, Cable CPE, VoIP CPE, IP phone
Data Communications Shipment Area
2008 2009Worldwide shipment
by areaWorldwide shipment
by area
Taiwan3%US
25%
Others6% Taiwan
1%
J
US28%
Others7%
Japan7%
AP26%
EU33%
Japan6%
AP26%
EU32%26%
Production Value:US$9,115M
Production Value:US$9,581M
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Source:MIC/III , Mar. 2010
Mobile Handheld Devices Shipment ValueMillions USD Growth %
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Source:MIC/III , Mar. 2010BFP: Basic/Feature Phone, SCD: Smart Cellular Device
Mobile Handheld Devices Shipment Area
North A i
Latin America
Japan0.3%
Others2.1%
Basic/Feature Phone 2008 2009North America
7.2% Latin America
Others3.1%
Europe17.8%
ChinaSouth
East Asia
America10.4%
America24.6%
2.1%
Europe23.9%
China
Other Asian
Countries23.1%
17.3%
16.3%
Taiwan1.6%
26.9%
P d i V l 75 370 K U i
China22.7%Taiwan
2.7%
Production Volume : 75,370 K Units Production Volume : 38,439K UnitsSmart Cellular Device
Latin America E
China2 7%
Taiwan0.8%Other
Latin America
0 0%China2.3%
Taiwan0.7% Other
North America
America0.0%
Europe14.8%
2.7% Other Asian
Countries2.6%
ROW North A i
0.0% Europe11.3%
Other Asian
Countries2.5%
ROWAmerica77.4%
1.7% America82.0%
1.1%
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Production Volume: 33,937K Units Production Volume: 45,494K UnitsSource:MIC/III , Mar. 2010
Taiwan Software market 2007-2012Taiwan software market 2007-2012 in USD Million
7 000
5,000
6,000
7,000
4,819 4,808 5,2095,688
6,218
4,420
45%40%35%30%
2 000
3,000
4,000
,25%20%15%10%5%
-
1,000
2,000
2007 2008 2009 2010 (e ) 2011(f) 2012(f)
5%0%-5%-10%
embedded 244 278 279 300 324 351
securi ty 1,091 1,231 1,366 1,569 1,799 2,062
2007 2008 2009 2010 (e ) 2011(f) 2012(f)
Enterpri se 107 115 122 133 147 163
outsource 437 500 568 655 762 892
Integrati on 2,541 2,694 2,473 2,553 2,657 2,750 % NA 9 6% 3 8% 7 1% 8 1% 8 5%
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Source:MIC/III , Mar. 2010
% NA 9.6% -3.8% 7.1% 8.1% 8.5%
Data quest 2010
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Taiwan ICT status
Taiwan ICT Hardware/Software Industry
Future DevelopmentsWh I t TWhen I meets T
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Intelligent mobile device takes top spot
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(MID: Mobile Internet Device, UMPC: Ultra Mobile PC)
ICT product is no longer just Hardware…
Service
Content
Device
OutputInput
• ICT = Hardware + Software + Service… and Content is KING.
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f• Business Model (Handset+PC+3.5G Mobile Service)
Taiwan ICT status
Taiwan ICT Hardware/Software Industry
F D lFuture Developments
When I meets TWhen I meets T
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When India meets Taiwan …
When software meets hardwareWhen software meets hardwareWhen embedded meets componentWh l hWhen talent merge togetherThe only and the last chance !
Let I.T. make products togetherLet I.T. market togetherLet I.T. market together
ICT D i d d i dICT Domestic demand to create industryComputer, Solar, TV, mobile, …
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p
How efficiency
How long to get a company registerand how much invest ?
Days Cost (USD) Taiwan invested (USD M) year 2010 [1]
Vietnam 90 700China 75-90 700
4 6 000 47 613,317.0 [2]
534.5
EUN 45 6,000
Singapore 30 N/A 31.8
47.6
Taiwan 15-30 500
One news[3]
To India 3.2
Foxconn in China: from initial setup to ship products within 2.5months (76 days)
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Source: [1] INVESTMENT COMMISSION, MOEA, Taiwan, , III integrated, 2010[2] http://tw.news.yahoo.com/article/url/d/a/101231/58/2k0dh.html[3] http://tw.news.yahoo.com/article/url/d/a/101229/4/2jujt.html
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