Taiwan IT supply chain has considerable global influence, says Intel VP

June 10, 2014 Leave a comment

Taiwan IT supply chain has considerable global influence, says Intel VP

Monica Chen, Taipei; Joseph Tsai, DIGITIMES [Tuesday 3 June 2014]

Taiwan’s IT supply chain is highly capable of integrating technologies and maintaining product quality and therefore has considerable global influence, according to Intel Sales and Marketing Group vice president and Taiwan country manager Jason Chen.

Facing fierce market fluctuations during the post-PC era, both Intel and Taiwan’s IT supply chain have been aggressively adjusting their business models to meet latest business trends and despite the fact that many still believe Taiwan IT players are unlikely to get away from the ODM/OEM industry, many Taiwan IT players are still trying to transform their businesses to create new demand, Chen said.

Many Taiwan players such as Quanta Computer and Asustek Computer have cooperated with Intel to jointly develop new products and technology recently and the partnerships are expected to create significant business opportunities, Chen pointed out.

However, Taiwan players will still need to focus on nurturing software and service talent, technology R&D ability and creativity, and to strengthen their hardware and software integration.

Wearable devices and highly-integrated Internet of things (IoT) are both new markets that will increase demand for emerging applications such as cloud computing, network calculation and storage, noted Chen, adding that Taiwan’s IT supply chain should pay more attention on the new business opportunities and with more innovations and technologies, it will have a good chance to hold a strong position in the market.

As for Intel’s investments in China, Chen pointed out that Intel’s strategy for China’s supply chain is completely different than the one for the Taiwan supply chain. Intel’s partnership with the supply chain in Shenzhen, China is mainly targeting the local market. However, products made by China’s supply chain may not be suitable for Taiwan or other countries. Intel is hoping the investments will allow the company to quickly enter the first-tier battlefield of China.

For the worldwide PC market, Chen noted that the decline of the PC market will slow down significantly in 2014 and with Windows XP stepping down plus the replacement trend in the enterprise market, demand for PC market is likely to start recovering in the future.

 

Filed under Macro Trends, TMT Trends

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Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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