Taiwan component makers to enhance competitiveness through vertical integration and automated production
Aaron Lee, Taipei; Joseph Tsai, DIGITIMES [Wednesday 2 July 2014]

Having almost no advantages competing against China-based component makers in terms of price and volume, Taiwan-based notebook component makers have recently started organizing their resources and are turning to focus on increasing their vertical integration and automating production.

With China component makers aggressively fighting for orders with Taiwan makers for notebook cooling modules, battery modules, chassis and hinges, Taiwan makers are currently facing strong pressure.

Some Taiwan component makers have already started pulling out as their executives are unable to find successors who are willing to fight on.

Since most China component makers are receiving subsidies from local governments to establish plants and increase production, which were once enjoyed by Taiwan makers, they are able to offer prices lower than those of Taiwan makers.

Increasing automated production lines to lower labor costs is a goal for makers such as Simplo Technology, Dynapack, Catcher Technology and Ju Tung.

For hinge makers Shin Zu Shing (SZS) and Jarllytec, in addition to automated production lines, SZS is expanding its number of metal injection molding (MIM) sintering furnaces from 20 to 26, while Jarrllytec will expand its businesses into MIM and stamping products.

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