Production Value of Taiwan`s Communication Sector to Hit NT$1.5 T in 2013

Despite global economic uncertainty, production value of Taiwan`s communication sector is estimated to surge significantly to NT$1.5 trillion in 2013 due to growing demand for wireless broadband and optical fiber access network, according to MIC (Market Intelligence Center) under Taiwan`s government-funded Institute for Information Industry.

MIC analysts noted that Taiwan`s communications industry hasn`t been dampened by the recent financial tsunami as deeply as expected. Especially, the sector of wireless communications is even expected to enjoy a sharp growth of 20-25 percent in production value in the second quarter of this year, thanks to strong demand in China.

According to MIC`s research, Taiwanese communications industry posted a compound annual growth rate of more than 24 percent in production value over the past one decade, much higher than the nation`s compound annual GDP growth of 3.57 percent during the period. Despite the global economy starting regressing, the industry is expected to maintain a growth rate at 8.8 percent for the span from 2008 to 2013, very likely to see production value exceed NT$1.5 trillion, or even up to NT$2 trillion based on a 15 percent growth, MIC indicated.

With telecom companies actively integrating mobile and fixed communication services in recent years worldwide, the global sector of mobile communications, fueled by strong demand in emerging countries and popularity of 3G technologies, is expected to achieve production value of $922 billion in 2011, contributing around 59 percent to the total.

The mobile communication boom will hopefully boost consumer demand for non-handset network devices, like Femtocell AP (access point), IP STB (Internet protocol set-top box), PLC (power line carrier), 3G network cards, IP cameras, WiMAX (worldwide interoperability for microwave access)-based applications and PON (passive optical network) devices. In 2009, MIC analysts indicated, Taiwan is expected to ship a total of 13 million units of Femtocell APs and IP STBs.

On the other hand, new application services, like IP TV, developed by telecom companies will also drive up need for broadband and optical fiber network access. Besides, around 330 companies have venture into applications of WiMAX technology so far, contributing to growths in the segment for wireless network access, MIC pointed out.

MIC added that with mobile network getting popular, up to 75 percent of netbook and notebook PCs will be built with wireless communication modules based on 3G, 3.5G, WiMAX or LTE (long time evolution) technology in the next five years. Also, wireless communication modules are very likely to be widely used in related consumer electronics, like MP3 players, game consoles and e-book readers, in the future.

Source: CENS