Independent 5-year Consumer Electronics Industry Forecasts for Taiwan

Taiwan’s consumer electronics devices market, defined as the addressable market for computing devices, mobile handsets and AV products, is projected to be worth around US$9.9bn in 2011. This is expected to increase to US$12.0bn by 2015 at a CAGR of 5%, slower than in the preceding five years. In the first quarter of 2011, Taiwanese vendors reported stronger than expected local sales of tablets, while 2011 target procurements of mobile handsets by Taiwanese telecoms operators were higher compared with the previous year.

Among the factors expected to support consumption growth in 2011 are improved labour market conditions and stronger wage growth, with a potential 3% hike in public sector wages and a 3.2% raise in the minimum wage. Smartphones could account for as much as 50% of handset shipments in 2011, while LED TV sets comprised around 20% of LCD TV set sales in Q410, with this share projected to 30% in 2011.

Computers

Computers accounted for around 50% of Taiwanese consumer electronics spending in 2010. Researchers forecast Taiwanese computer hardware sales of US$5.0bn in 2011, up by a single-digit factor year-on-year (y-o-y). With PC penetration at about 74%, CAGR for the 2011-2015 period is forecast at 5%, and despite competition from new form factors there will be growth areas in multimedia and entertainment notebooks as well as tablets. In Q111, Taiwanese telecoms operators announced sizable tablet procurements.

AV

AV devices accounted for about 35% of Taiwanese consumer electronics spending in 2010. In 2011, Taiwan’s domestic video, audio and gaming device market is projected a value of US$3.4bn. The market is expected to grow at a CAGR of 4% between 2011 and 2015 to a value of US$3.9bn in that year. The market will rely on product innovation for continued momentum, with growth areas including LED TV sets, 3D TV, Blu-ray DVD players and e-readers.

Mobile Handsets

Taiwanese mobile handset sales accounted for about 15% of Taiwanese consumer electronics spending in 2010. Total handset sales are expected to grow at a CAGR of about 5% through 2015, with the market driven mainly by replacements as penetration is already above 125%. The fastest sales growth will be of 3G handset units and smartphones, after operators planned to generate about 20% of 2010 sales from this category.

TABLE OF CONTENTS

Executive Summary
Computers. 5
AV . 6
Mobile Handsets . 6

SWOT Analysis
Taiwan Consumer Electronics Market SWOT. 7
Taiwan Electronics Industry SWOT  8
Taiwan Political SWOT  9
Taiwan Economic SWOT  10
Taiwan Business Environment SWOT . 11

Asia Business Environment Ratings

Consumer Electronics Market
Computers. 15
Table: Computers: Demand, 2008-2015 . 16
AV . 18
Table: AV: Demand, 2008-2015 . 18
Mobile Handsets . 20
Table: Handsets: Demand, 2008-2015 . 21

Consumer Electronics Industry
Table: IT Hardware Industry Revenues  22
Computers. 24
Table: Computer Production, 2008-2015 . 24
Taiwan Computer Production And Export  25
AV . 26
Table: AV: Production, 2008-2015 . 26
Table: TV Set Exports . 26
Mobile Handsets . 27
Table: Handsets: Production, 2008-2015 . 27
Table: Mobile Phone Monthly Production (TWD)  27
Semiconductors . 28
Table: Semiconductors Demand, 2008-2015  28
Table: Domestic Sales, IC Foundry Wafers, 12-Inch And Above (TWDmn)  29
Table: Domestic Sales, IC Foundry Wafers, 8-Inch And Above (TWDmn)  29
Table: Taiwan IC Manufacture (annual) TWDbn 2002-2009 . 29
Table: IC Chip Manufacturing (TWDmn) . 30
Table: IC Industry Revenues (TWDbn) . 30
Table: IC Packaging Domestic Sales (TWD’000) . 30

Industry Forecast Scenario
Table: Consumer Electronics Overview, 2008-2015 . 32

Industry Developments
Government Authority . 34

Macroeconomic Forecast
Taiwan – Economic Activity . 36

Competitive Landscape  
Computers. 38
Table: Major PC Makers Sales – March 2009 39
Handsets . 40
AV . 42

Company Profiles  
Taiwan Semiconductor Manufacturing Company (TSMC) . 44