| Prime News | | ![]() | ![]() | Own-House Owners Will Enjoy Preferential Rate for Housing Sale
Taipei, Aug. 30, 2007 (CENS)--The Executive Yuan (the Cabinet) passed a proposal yesterday (Aug. 29) allowing local citizens to enjoy 10% preferential rate of land value-increment tax for housing sale without restriction on the number of deals, so long as they and direct family members own only one house at one time with its land under certain space, a move expected to greatly vitalize the realty market.
The measure will supplement the existing preference allowing local citizens to enjoy the 10% preferential rate for sale of house, whose space is less than 3 ares (around 90 pings, one ping equals 36 square feet) in urban areas or 7 ares (210 pings) in rural areas. The existing preference can only be used once in one's lifetime.
Land space limits for the new preference are only half those of the existing preference, amounting to 1.5 ares (45 pings) in urban areas or 3.5 ares (105 pings) in rural areas. To quality for the preference, house owners, along with their spouses and children under age of majority, can only own one house at one time, have their residences registered at the houses in question for six years consecutively prior to the sale, and have not leased the houses or utilized them for business purpose in the previous five years.
Peng Pei-yieh, manager of a Taipei housing brokerage firm, noted that the new measure will cut housing-replacement cost for own-house owners, thereby vitalizing the housing market, without benefiting speculators, though.
The new measure is scheduled to take effect in 2008, if the Legislative Yuan can ratify relevant legal revisions by the end this year.
Chang Sheng-ho, vice finance minister, noted that 68.45% local families which own only one house will benefit from the new measure but it will cost the government NT$6-8 billion of annual taxation revenue. An average local family changes houses three to four times, according to Chang.
Should land space for own-house sales surpass the aforementioned limits, the land space under the limits can still enjoy the preferential rate, while the extra space will be subject to progressive rates ranging 20-40%.
Meanwhile, local citizens will still be able to tap another existing preference allowing them to refund their land value-increment tax for housing sale so long as they purchase land again within two years, either before or after the housing sale, at cost higher than their proceeds from the housing sale. Land space for the sold houses, though, cannot exceed 3 ares in urban areas or 7 areas in rural ares. There is no restriction on the number of deals.
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| | ![]() | | | Taiwanese Delegates Ready to Present Green Proposal at APEC Meeting
Taipei, Aug. 30, 2007 (CENS)--In line with the theme "Building a Sustainable Future" being pushed by the hosting Australian government for APEC (Asia Pacific Economic Cooperation) 2007 meeting, to be held in Sidney Sept. 2-9, Taiwanese business and official delegates are ready to put forward their proposals and share their experience pertaining to energy conservation during the occasion.
Lin Yung-le, director of the department of international organizations, the Ministry of Foreign Affairs, pointed out yesterday (Aug. 29) that during the APEC Economic Leaders' meeting, Sept. 8-9, Stan Shih, the Taiwanese representative, will present proposal for developing green business opportunities, urging countries worldwide to make efforts in the aspects of green production, green consumption, and green industries.
During a press conference yesterday, F.C. Tseng, vice chairman of Taiwan Semiconductor Manufacturing Corp. (TSMC), noted that as a Taiwanese delegate for the APEC Business Summit, scheduled Sept. 6-7, he will share TSMC's experience in energy conservation and environmental protection with other participants of the meeting.
Diana Chen, chairperson of Taipei 101, another Taiwanese delegate, stated that she will take advantage of the occasion to learn more about energy conservation and management, which is especially important for the glass tower.
In addition to three ABAC (APEC Business Advisory Council) members, Jeffrey Koo, Sr., chairman of Chinatrust Financial Holding, Theodore Huang, chairman of TECO, and Kao Shan-chih, vice chairman of Imei Group, the Taiwanese delegation for the Business Summit also consists of seven business leaders, F.C. Tseng, Diana Chen, Wang Jui-hua, vice chief-executive-officer of Formosa Plastics Group, Chen Kui-min, chairman of Taiwan Power Co., Pan Wen-yien, chairman of CPC Corp. Taiwan, Lo Chin-min, chairman of Taiwan Industrial Bank, and Pai Wen-cheng, chairman of Polaris Group.
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| | ![]() | | | Teco Mulls Acquiring Electric-mechanical Firms in Mainland China
Taipei, Aug. 30, 2007 (CENS)--Thanks to the booming demand for large- and medium-sized motors, leading domestic manufacturers of electric machinery, including Teco Electric & Machinery Co. and Fu Sheng Industrial Corp., are encountering a shortfall in production capacity, with the former considering to acquire electric-mechanical plants in mainland China.
Teco said that it sees a backlog of orders for one and a half years. In an attempt to expand production capacity for large- and medium-sized motors, Teco is considering acquiring an electric-mechanical plant across the Taiwan Strait, which will be completed by the end of this year.
If the acquisition deal can be smoothly closed, Teco estimated that it would see a 50% year-on-year growth in sales of heavy-duty electrical products next year as it will also expand production capacities in its two plants in mainland China.
Fu Sheng, the world's largest manufacturer of golf club heads, said it has received orders for compressors to fill production lines till the end of 2009. The company began tapping the large-sized compressor market four years ago when it acquired the Plant Air Package unit of the U.S.-based Elliott Co. Last year, Fu Sheng realized US$2.48 million in earnings from investing in the Elliott's Plant Air Package unit.
Fu Sheng said that it has achieved 80% production capacity utilization rate at present time. The company has registered NT$16.6 billion (US$504.55 million at US$1:NT$32.9) in consolidated sales in the first seven months of this year, up 8.6% from a year earlier.
C.K. Liu, chairman of Teco, said that his company is working on some acquisition deals, and that it would seek cooperation from big shareholders to take part in such deals. At present, the company is in talks with large-sized electric-machinery firms located in northern China.
Liu said his company's heavy-duty electric unit contributed over NT$2 billion (US$60.79 million) to overall earnings in the first half of this year. After expanding production capacities for two plants in the mainland, the company would be able to see substantial growth in both sales and earnings in the years to come.
Looking to the promising prospects of Teco's deployment in the mainland, Morgan Stanley Group has upgraded the investment grade of Teco. With considerable idle land space in Tamshui, Hsinchuang and Wuku of Taipei County, Teco has also invested in some profitable businesses, including Teco Image Systems, Inc. and Creative Sensor Inc.
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| | ![]() | | | IMN to Inaugurate China Securitization, Real Estate, Finance Summit in Beijing
Taipei, Aug. 30, 2007 (CENS)--Information Management Network Llc (IMN), a division of Euromoney/Institutional Investor, recently announced that it will inaugurate the China Securitization, Real Estate & Finance Summit, which will take place Nov. 8-9 at the Intercontinental Hotel in Beijing, mainland China.
"Securitization in China has just started, and we see tremendous benefit for the industry players to attend," said Jun Qian, director general of the China Securitization Forum (CSF). The CSF has joined forces with IMN to create a more relevant educational program. China's nascent securitization market has been on the verge of catapulting into the mainstream since the Pilot Transactions of 2005, and there now exists a consensus that the success of previous deals will in time lead the way to the launching of many more. The many educational sessions will cover market trends and new development, legal issues and challenges in the domestic market, investors perspectives and opportunities, tips for new issuers, as well as keynote presentations from the pivotal regulators.
Lee Meddin, deputy treasurer & global head of Structured Finance at the International Finance Corporation, predicted that the IMN's upcoming event will provide a forum for market participants to learn more about opportunities and to participate at an early stage in the development of this important asset class." The event promises to attract representatives from local and international arrangers, investment houses, issuers, investors, law firms, rating agencies, and more.
Since 1994, IMN has presented executive-level conferences of the highest quality to institutional finance and investment markets worldwide, each one a carefully packaged event combining excellent educational sessions with networking opportunities. With approximately eighty conferences now held in over 30 cities across the globe, IMN has become a leading global provider of information.
The Taipei-based Taiwan Economic News is one of the media partners for the inaugural China Securitization, Real Estate & Finance Summit. For more information on this event, visit the website at: http://www.imn.org/esb1032/pr
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| | ![]() | | | MediaTek And Affiliate Gain Ground in Mainland Chinese IC Design Market
Taipei, Aug. 30, 2007 (CENS)--ALi Corp. has snatched 60% of mainland Chinese market for set-top box (STB) chips, another significant accomplishment after its parent MediaTek Inc. became the mainland's No.1 cellphone-chip supplier.
Taiwanese industry watchers ascribed ALi's achievement to its advantageous cost effectiveness and technology to integrate STB chips. Seizing No.1 title in the mainland's market of personal media player (PMP) chips is the company's next goal. It is now the No.2 supplier of such chips in the mainland with market share of 10-20%, trailing only Action Semiconductor Co., Ltd.
The company projected its revenue for this quarter to total NT$1.1 billion (US$33 million at US$1:NT$33), increasing from last quarter's NT$890 million (US$26 million) thanks to rising demand for STB and PMP chips in the mainland. It has targeted revenue for this year at NT$4 billion (US$122 million), up from last year's NT$3.26 billion (US$98 million).
After securing the top spot in the mainland's STP-chip market, ALi is speeding up venturing into the Middle East market.
Mainland Chinese market for consumer electronics like STP and digital TVs is expected to be driven up by the 2008 Beijing Olympic Games. The lucrative market has lured Taiwanese chip vendors, not only MediaTek and ALi but also VIA Technologies Inc., Sunplus Technology Co., and Novatek Microelectronics Co., Ltd., to compete for a share there.
According to BNP Paribas, MediaTek has bagged up to 80% of the mainland Chinese market for chips used in generic mobile phones and continued winning orders from big-name mobile-phone suppliers. The institutional investor estimated that MediaTek would likely ship 130 million cellphone chips throughout this year, taking over 10% of global market and becoming one of the world's top three suppliers of the chips.
BNP Paribas attributes MediaTek's success in the mainland mostly to its strategy to offer tailor-made designs and cut delivery time to two months from six to nine months, quickly winning it orders from mainland Chinese handset suppliers including Lenovo, TCL, Amoi and Birds.
The Taiwanese No.1 fabless house recently unveiled a three-prong strategy to compete in the mainland's market of third-generation handset chips, with ultimate goal of rolling out full range of product lines.
According to the strategy, the company will first set up capability of independently developing baseband chips consistent with the mainland's TD-SCDMA (time-division synchronous code division multiple access) cellular standard. In this stage, the company will assemble outsourced radio-frequency chips with its baseband chips.
In the second stage, the company will develop the dual TD-SCDMA/EDGE module technology and radio-frequency chips on its own.
The mainland's industry watchers estimated that 20-50 million TD-SCDMA handsets would be shipped in the mainland next year. They noted that the mainland's consumption of cell phones approaches 80 million systems a year and at least half of the mainland consumers will very likely trade their current phones for TD-SCDMA 3G phones next year.
Taiwanese market-research organization Topology forecast the mainland market for TD-SCDMA handsets to reach 16 million systems in 2008 and grow seven folds to over 80 million systems in 2010.
To make the venture as smooth as possible, MediaTek is reported to buy handset-chip designer Analog Devices Inc. (ADI) in the U.S. for around US$400-500 million. ADI, NXP Semiconductor and Texas Instruments (TI) have complied with TD-SCDMA standards and ADI is now a leading provider of TD-SCDMA technology.
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| | ![]() | | | MediaTek Forecasts to Bag 13% of Global Handset Chip Market
Taipei, Aug. 30, 2007 (CENS)--Foreign institutional investors forecast that MediaTek Inc., currently Taiwan's No.1 fabless house, to ship 130 million mobile-phone chips throughout this year, winning around 13% of global market.
The company has recently introduced a highly integrated base-band chip incorporating Bluetooth, duo-mode and global positioning system (GPS) functionalities. The chip has become a favorite with mainland Chinese handset players including Lenovo, TCL, Birds and Amoi.
The mainland's demands for MediaTek's chips have picked up since June this year, inspiring industry watchers to project the company's shipment for this quarter to total 50 million chips.
The bright forecast is contradicting general opinions that Infineon's recent acquisition of LSI Logic's handset-chip unit would impede MediaTek's progress in expanding penetration in the mainland market.
A study recently released by BNP Paribas shows that MediaTek has snatched up 80% of the mainland market of chips for used in no-brand handsets and 70% of the mainland market for chips used in brand-name phones.
BNP Paribas' market research fellows pointed out that MediaTek's multifunction chip has won 60% of Lenovo's contracts and 50% of the contracts from TCL, Amoi and Birds.
Industry watchers estimated MediaTek to ship over 170 million chips in the mainland throughout next year.
MediaTek forecast early this year at an institutional-investor conference that its shipments this half will increase quarter over quarter thanks to brisk demands in emerging markets. Throughout this year, the company's shipments of handset chips will likely cross 100 million units. The multifunction chip is estimated to help push up the company's revenue by 15-20% this year from last year.
MediaTek's chips for digital TV are as popular as its handset chips in the mainland. So far it has won contracts from the mainland's major digital-TV suppliers. The company is currently Taiwan's No.1 supplier of TV chips. It projected TV chips to increase do around 10% of its total revenue next year from current 5%.
Robust demands for its digital-TV chips have pushed fabless house to buy silicon-foundry capacity from Taiwan Semiconductor Manufacturing Co. (TSMC) regardless of its strong partnership with United Microelectronics Corp.
Foreign institutional investors estimated that the company's revenue from sales of digital-TV chip would likely eclipse US$80 million this quarter alone and the number would further increase to US$100 million next quarter.
Prosperous business at MediaTek has also been good news to Taiwanese chip assemblers like Advanced Semiconductor Engineering Inc. (ASE), Siliconware Precision Industry Co., Ltd., Phoenix Precision Technology Corp., and Kyec Yuan Electronics Co., Ltd., as MediaTek has increased placing orders with them.
These chip assemblers are estimated to see their revenue for this month increase 7-10% from last month, on average.
DisplaySearch estimated that global TV-chip market would likely grow 50-60% this year.
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| | ![]() | | | Taiwan's Automobile Production Value Down 17% in 1st Half: ITIS
Taipei, Aug. 30, 2007 (CENS)--The production value of Taiwan's automobile industry dropped 17% in the first half on a year-on-year (YoY) basis to NT$145.5 billion (US$4.41 billion at US$1: NT$33) due to sluggish domestic new-car sales, according to the government-sponsored Industry & Technology Intelligence Services (ITIS) project.
The production value of complete autos in the first six months was only about NT$70.7 billion (US$2.14 billion), a six-year low. ITIS attributed the waning trend to the cold domestic economy and highflying fuel prices that have hampered new-car purchase willingness.
The production value of auto-parts was NT$74.78 billion (US$2.27 billion) in the first half, down 5.45% from a year earlier and the first time for the sector to eclipse complete-auto counterpart. Industry experts said that local auto-parts makers are enjoying increasing export sales and an increasing number of them no longer rely on domestic sales as much.
ITIS, however, is more optimistic about the second-half production value because many local automakers are planning to steadily promote heavy-weight products in next few months. Another factor that might further push new-car sales by the end of the year is, the project pointed out, that many automakers are aggressively clearing out inventory of older models by offering preferential terms because the new fourth-stage auto emission standards will be effective next year, when most existing models can no longer be sold.
In terms of complete-vehicle production values, the large passenger car (over-2,000cc) sector suffered the stiffest decline of 41.6% due to the increasingly expensive gasoline prices.
The sluggish domestic automobile market also led to the sliding stock prices of all major automakers on the island.
Many local automakers now have new models ready to roll out soon, including the new Mitsubishi Lancer Fortis compact car made by local Mitsubishi maker China Motor Corp.); new 2.4L Toyota Camry medium sedan and remodeled Toyota Altis sub-compact made by Hotai Motor Co. Ltd.; Nissan Livina Geniss sub-compact by Yulon Nissan Motor Co.; and Ford Focus TDCi sedan.
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| | ![]() | | | TSE-listed Bicycle Makers Report Lucrative Results for 1st Half
Taipei, Aug. 30, 2007 (CENS)--All the top-three bicycle makers listed on the Taiwan Stock Exchange (TSE) enjoyed revenue and profit growths in the first seven months of the year, according to financial reports released by the companies.
The No. 3 Ideal Bike Corp. registered accumulated pretax earnings of NT$105 million (US$3.18 million at US$1: NT$33) in the first half, a clear increase of 149% from the same period of last year, generating earnings per share (EPS) of NT$0.95 (US$0.03).
Ideal attributed the commendable performance to effective gains from its reinvested businesses, which suffered a net loss of NT$24million (US$727,272) in 2006 but have achieved breakeven in the first half of the year. In addition, the company said, the increasing export volume and upgraded average selling prices (ASP) also helped elevate its revenue and profit growths.
In 2006, Ideal's export ASP was about US$220 for each bike, but such value has jumped to US$236 in the first half this year.
The bike maker pointed out that both the second and third quarters are traditional off-seasons for bike sales and it forecasted the third-quarter operation performance would be similar to that in the second quarter. It also said that the revenue performance is expected to see clear growth in the fourth quarter.
Merida Industry Co., Ltd., the No. 2 bike manufacturer in Taiwan, registered accumulated earnings of NT$786 million (US$23.82 million) in the first half, up 70.74% from the same period of last year, generating initially-estimated EPS of NT$3.65 (US$0.11).
With a higher rate of own-brand production, Merida took on much-bigger order volumes than the firm's scheduled production plan in July than Ideal. Merida's increased scheduled production volume in July raised the company's revenue by 30% from previous month and is expected to help increase steadily monthly revenues in the third quarter.
Giant Manufacturing Co., Ltd., the No. 1 bicycle maker in Taiwan, has not publicized its results for the first half but its accumulated revenue for the first seven months at NT$5.39 billion (US$163.45 million), up 21.6% from a year earlier.
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| | ![]() | | | Taiwanese Creditors Trying to Collect From Fugitive Tycoon Wang
Taipei, Aug. 30, 2007 (CENS)--Although just having been bailed out from detention at an immigration holding center in San Pedro, California, fugitive Taiwanese tycoon You-tseng Wang, former Rebar Group's CEO, may face an aggressive cross-Pacific effort by his creditors in Taiwan to collect the huge debts incurred by the group's affiliates.
Wang is suspected of having embezzled billions of dollars in corporate funds from the group before fleeing with his wife, Chin She-ying Wang, to the United States late January this year. In March this year, Taiwanese prosecutors indicted Wang and more than 100 others involved in the Rebar Group scandal on a long list of charges, including fraud, money laundering and insider trading.
However Taiwan's law enforcers seem to have little chance of extraditing the tycoon back to Taiwan for punishment. Nevertheless, creditors on the island are anxious to collect and plan to take immediate actions. It is reported that Wang has a total of 35 creditors in Taiwan, mostly financial institutions, with 27 believed to be part of the collection effort that will be led by Mega International Commercial Bank.
The 27 creditors intend to collect combined debts of NT$25.231 billion (US$764.58 million) from Wang, which accounts for 77% of Rebar Group's total overdue loans of NT$36.034 billion (US$1.092 billion at US$1 = NT$33).
Insiders disclosed that the creditors would retain international lawyers or lawyers in the U.S. to handle the case and they may apply to the court in the U.S. to impose provisional seizure on or injunction to seize Wang's overseas properties. However, some believed that such action would be futile because debtors usually transfer ownership to third parties to evade seizure. Nevertheless, Taiwan's Bankers' Association and some financial associations have decided try regardless.
In addition to Wang, other fugitive debtors wanted by Taiwan's financial institutions include Chen Yu-hao, former chairman of Tuntex Group with debts of NT$31.5 billion (US$954.55 million), Chu An-hsiuang, chairman of An Feng Group with NT$16.6 billion (US$503.03 million), and Tseng Cheng-jen, CEO of Kuangsan Group with NT$5.4 billion (US$163.64 million).
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| | ![]() | | | Taiwan's Export Orders Hit New High of US$29.72 B. in July
Taipei, Aug. 30, 2007 (CENS)--Export orders received by Taiwan's manufacturers and traders hit a monthly high of US$29.72 billion in July of this year, jumping by 23.49% from the corresponding figure of last year, according to the statistics released by the Ministry of Economic Affairs (MOEA).
Orders for information technology (IT) and telecommunication products were major contributors with a sharp annual rise of 30.64%. Among the products, notebook personal computers (NB PCs) and consumer electronic devices witnessed booming increases in demand. Market observers predicted that the strong market demand for the said products would continue in the third quarter of the year.
In July export orders for electronic products recorded an annual rise of US$1.22 billion or 21.42%. To meet the flood of orders, the industry has speeded up production lines; and, as a result, the annual growth of Taiwan's manufacturing industry posted at 13.61%, the highest of its kind since June of 2004.
In terms of area, Hong Kong and China are Taiwan's major buyers of exports, with Europe placing steadily bigger orders with Taiwan, while the United States seemed to be stagnant in placing orders with the suppliers here.
In the first seven months, the value of Taiwan's export orders amounted to US$189.29 billion for an annual rise of 14.32%. If based on New Taiwan dollar, the percentage would be 6.71%. In the same period, IT and telecom products enjoyed annual rise of US$1.38 billion due mainly to the influx of orders for NB PCs.
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| | ![]() | | | Taiwan's Flat-panel Display Sector to See Production Value of NT$438.99 B. in Q3
Taipei, August 30, 2007 (CENS)--With an ongoing boom in Taiwan's flat-panel display making sector, makers are expected to post overall production value of NT$439.99 billion for the third quarter of this year, growing 9.8% from a quarter earlier, according to the government-funded Industrial Economics Knowledge Center (IEK).
Of the total projected production value, display panels are estimated to contribute NT$318.34 billion in the quarter, up 9.6% from a quarter earlier, with value of small- and medium-sized models and color filters surging by 11% and 12%, respectively, at the same time.
According to statistics compiled by the IEK, Taiwan's flat-panel displays sector generated production value of NT$725.38 billion for the first half of the year, which included NT$521.71 billion by the display panel sector, with the largest proportion of NT$438.4 from large-sized display panels, NT$47.65 billion from small- and medium-sized models and NT$32.9 billion from twisted nematic (TN) and super TN (STN) models.
Since this April, prices of display panels for information and technology products have turned modestly upward, while models for TVs have stayed stable. This has caused a tight supply in the sector; however, such a situation is expected to improve gradually in the third quarter of this year, indicated Yeh C.C., project manager of the IEK.
Besides, Yeh said that, a price rise in large-sized display panels in the second quarter of the year has boosted sales and profits for Taiwan's major makers of this kind, including AU Optroincs Corp., Chi Mei Optoelectronics Corp., Chunghwa Picture Tube Co., Ltd., HannStar Display Corp. and Innolux Display Corp.
He projected that production value of large-sized display panels to grow by 10% from a quarter earlier, and that of small- and medium-sized models to increase by 11% to improve a tight supply in the sector.
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| | ![]() | | | Quanta to Hit North American Market With Low-priced Laptops
Taipei, August 30, 2007 (CENS)--Quanta Computer Inc., one of the world's leading suppliers of notebook PCs, has taken a move to hit the North American market with its low-priced laptops, according to industry sources.
The low-priced laptop, namely XO, is jointly developed between Quanta and U.S.'s Massachusetts Institute of Technology for the one laptop per child (OLPC) project, and Quanta is scheduled to deliver the low-priced models to Third World countries starting this October.
However, components suppliers for Quanta's XOs said that that Quanta appears to be exploring new markets independently by promoting the models to schools in developed countries. This is expected to generate huge business potential for Quanta's suppliers of components, including Chi Mei Optoelectronics Corp. and Simplo Technology Co., Ltd.
With low-prices notebook PCs becoming popular in the consumer market nowadays, ASUSTeK Computer Inc. and Intel have collectively developed an Eee PC, which will be on sale soon, to seize business opportunity during the back-to-school season, while Acer Inc. also shows an interest in venturing into the market.
In fact, the XO is the first low-priced model to incur such a market trend, which is exclusively assembled and shipped by Quanta, with 90% of its components supplied by Taiwanese suppliers.
Accordingly, in addition to Quanta itself, its clients also are highly interested in introducing the XOs into schools and are about to contract Quanta for assembling the models. Nevertheless, they have to wait till next year, when Quanta will have started delivering such models, due to a contract clause forbidding Quanta to supply the models to others.
On the other hand, Quanta has claimed it will fill its production lines to start delivering XOs for the OLPC project in the fourth quarter of this year, but declined to confirm the size of delivery. However, the company is still considering whether to introduce the model into the commercial market.
According to staff of the OLPC project, shipment of the XOs for the first year will amount to 10 million units, but suppliers of components estimated that only one million units will be shipped by the end of this year, far less than expected. But, they have strong optimism for business opportunities realized by low-priced laptops.
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| | ![]() | | | Kolin Hits North American Market for LCD TVs Under Partner's Brand
Taipei, August 30, 2007 (CENS)--Kolin Inc., a Taiwanese maker of household electronics, has successfully hit the North American market for liquid crystal display (LCD) TVs using the brand of 'Olevia' owned by its U.S. cooperative partner Syntax-Brillian Corp., with Olevia ranking as the seventh-largest LCD TV brand in shipment in that market in the second quarter of this year, according to statistics compiled by iSuppli.
In addition, Olevia is trailing the six-largest brand, Sony, by a margin of only 0.2% in market share following the second quarter.
James Li, president of Syntax-Brillian, commented that Olevia commanded a 6.1% share in shipment as the No. 7 brand in the North American market for LCD TVs in the second quarter, with 37-inch models accounting for the largest portion of its total shipment.
He added that the brand posted shipment of some 256,000 units of 19-inch and above LCD TVs, including 37-, 32- and 42-inchd models, in the market in the quarter, with Syntax-Brillian taking charge of branding and marketing and Kolin developing and manufacturing. Kolin, which owns 13% of Syntax-Brillian's common stock, represents a key component of the U.S. firm's virtual manufacturing platform.
Noteworthy is that Taiwanese makers of LCD TVs are gradually building an integrated supply chain, including supplies of display panels, printed circuit boards, components and power supplies, in the sector on the island, emphasized Li. This allows them to manufacture LCD TVs domestically without outsourcing any parts from foreign suppliers, as well as helping some to develop own brands in the global market.
Kolin already has doubled its shipment projection of LCD TVs to 1.2 million units for this year from 600,000 units posted last year, and targets the U.S. as its major export market. So far, the company has shipped 520,000 units over past seven months of this year and is on schedule, said Frank Li, president of Kolin.
According to the latest report issued by iSuppli, the nine most popular LCD TV brands in the U.S. market in the second quarter of this year included Vizio, Samsung, SHARP, Philips, LG, Sony, Olevia, Westinghouse and Panasonic, in descending order.
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| | ![]() | | | O2 Asia's Troubles Bring Crisis to Taiwan Contract Manufacturers
With sales of its handsets performing poorly in the Asian market, O2 Asia, a world-class mobile-phone brand, reportedly plans to slash budgets for its business operations or even close up shop. This means crisis for O2's contract suppliers in Taiwan.
The company recently sent its chief financial officer and attorneys, along with other officials, to meet with contract suppliers in Taiwan about a permanent suspension of all production of its handsets. The firm explained that it is adjusting its marketing strategy for the second half of 2007, and denied that it is withdrawing from the Asian market.
O2 is an European telecom carrier that promotes its own-brand mobile phones and personal digital assistant (PDA) phones. In the Asian market it focuses on its own-brand handsets; and in Taiwan, it markets high-end, high-priced PDA phones that are supplied by such domestic manufacturers as Quanta Computer Inc., ASUSTeK Computer Inc., Arima Communications Corp., and Gigabyte Communications Inc.
But sales of its PDA phones have been disappointing because of prices that are higher than those of competing models, and inventories have piled up to an alarming extent.
To make matters worse, since April customers have been returning large numbers of O2 Asia's XDA Atom Life series PDA phones, which are supplied by Quanta on an ODM (original design manufacturer) basis, on complaints of poor quality. This has undermined O2s financial situation and its position as an ODM maker, causing it to consider streamlining its own-brand handset operations or withdrawing from the market.
Suffering most severely from this situation is Quanta, which is O2's only ODM supplier. Quanta has prepared to fill O2's orders; its production lines are ready, and the necessary materials have been procured. It faces an inventory loss of NT$400-500 million, not including the prepayments it has made for hundreds of thousands of chipsets for use in O2 phones. If orders from O2 fail to arrive Quanta will be in major difficulty, insiders say.
The other affected suppliers have been more effective in cushioning the O2 shock. Arima supplies only one high-priced model to O2, and so depends little on its orders. Gigabyte was already preparing to shut down a production line for O2 Asia handsets, which has recorded lackluster sales.
ASUSTeK has escaped the turmoil resulting from the shutdown in the Asian market, since its production lines have been reserved for only one new O2 smartphone for sale in the European market. (SC, August 2007) | |
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