Manufacturing News

China trade delegation lists 15 Taiwanese suppliers for procurement talks

A mainland Chinese procurement delegation due to visit Taiwan early next month has named 15 Taiwanese ITC (information-technology-communications) suppliers as their negotiation counterparts in procurement conferences.

The 15 Taiwanese suppliers include handset maker HTC Corp., notebook-computer maker Acer Inc. and networking-equipment makers Zyxel 
Communications Corp., GemTek Technology Co., Ltd., Accton Technology Corp. and Tecom Co. Ltd.
 
The procurement delegation plans to buy 3G mobile phones, netbook computers, network cards, cell towers, very high data DSL (VDSL) gears and digital subscriber line access multiplexer (DSLAM) equipment from Taiwan's manufacturers.
 
Industry watchers pointed out the mainland's iconic telecom-equipment suppliers like Huawei Technologies Co., Datang Telecom Technology Co. and ZTE Corp. are eager to use the conferences as the opportunity to include Taiwan's equipment suppliers in their supply chains dedicated to the Latin American market, where they have snatched up considerable market shares.
 
Huawei has grabbed half of Brazil's market for DSLAM equipment and developed strong presences in the country's market of ADSL2+ and VDSL equipment. Its operation there generated revenue of around US$1 billion last year alone, helping swell the company's global operation revenue to US$23.3 billion, up 46% year on year. Last quarter, Huanwei became the world's No.3 telecom-equipment supplier, after only Ericsson and Nokia-Siemens.
 
In mainland China, Huawei and ZTE have won 30% and 20% of China Unicom's orders for 3G equipment, respectively.
 
Institutional investors estimate the 100-representative procurement delegation to place NT$30-40 billion (US$909 million-US$1.2 billion at US$1:NT$33) worth of orders with the island's suppliers.
 
During the June 3-4 meetings, the industrialists from the two sides of the Taiwan Strait will also discuss cooperation on TD-LTE (Time Division Long Term Evolution) 4G mobile business. The discussion, local industry watchers estimate, suggests procurements of 4G gears will ramp up after 2011.

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