2009 TAIWAN INDUSTRIAL OUTLOOK

Contents

Preface

Macroeconomic Overview

Chapter 1　 Outlook of Global Economies 1

Chapter 2　 Outlook of Taiwan's Economy 13

Chapter 3　 Major Developmental Issues of Taiwan's Manufacturing Sector 25

Industry Insights

Chapter 1　 IC Industry 35

Chapter 2　 Electronic Components Industry 49

Chapter 3　 Flat Panel Display (FPD) Industry 65

Chapter 4　 Electronic Materials Industry 77

Chapter 5　 Communications Industry 89

Chapter 6　 IT Industry 101

Chapter 7　 Machinery Industry 117

Chapter 8　 Vehicle Industry 133

Chapter 9 Steel Industry 149

Chapter 10　Non-Ferrous Metals Industry 163

Chapter 11　Petrochemical Industry 181

Chapter 12　Polymer Industry 197

Chapter 13　Textile Industry 213

Chapter 14　Biotechnology Industry 227

Chapter 15　Pharmaceutical Industry 241

Chapter 16　Medical Device Industry 255

Chapter 17　Food Industry 267

New Niche Industry Insights

Chapter 1 Digital Consumer Electronics 279

Chapter 2 Renewable Energy Industry 291

Chapter 3 Innovative Opportunity in the ICT Industry 305

Index of Tables 315

Index of Figures 319

ITIS Program Outline 323

The Organization of ITIS 325

====Table Index====

Table 1-1-1 US Economic Forecast Summary 6

Table 1-1-2 Euro Zone Economic Forecast Summary 8

Table 1-1-3 Japan Economic Forecast Summary 9

Table 1-1-4 China Economic Forecast Summary 11

Table 1-2-1 Expenditure on Gross Domestic Product in 2008 and 2009 13

Table 1-2-1 Expenditure on Gross Domestic Product in 2008 and 2009 (Continued) 14

Table 1-3-1 The Impact of China’s Economic Policies on Taiwanese Enterprises 30

Table 1-3-2 The Influence of Macroeconomic Trend on Manufacturing in Taiwan 34

Table 2-1-1 Trends of the Production Value of the Taiwanese IC Industry 36

Table 2-1-2 The Changing of Market Share of the Four Global DRAM Alliances 43

Table 2-2-1 R&D Expense of Major Japanese Electronic Component Suppliers 58

Table 2-2-2 The Influences of Major Polices and Laws of Mainland China on PCB Vendors 59

Table 2-3-1 Industry Categories (Grouped by Technology) 65

Table 2-3-1 Industry Categories (Grouped by Technology) (Continued) 66

Table 2-3-2 Trend of Global Flat Panel Display Product Value from 2004 to 2009 66

Table 2-3-3 Trend of Global FPD Key Components Product Value from 2004 to 2009 67

Table 2-3-4 Trend of FPD Product Value in Taiwan from 2004 to 2009 68

Table 2-3-5 Trend of FPD Key Components Product Value in Taiwan from 2004 to 2009 69

Table 2-3-6 Added Value of Taiwan’s Large Size LCD Industry 70

Table 2-4-1 Overview of Global Electronic Materials Industry from 2006 to 2010 78

Table 2-4-2 Overview of Taiwan Electronic Materials Industry from 2006 to 2010 80

Table 2-6-1 Production Locations of the Taiwanese IT Hardware Industry in 2007 and 2008 103

Table 2-6-2 Shipment Value, Shipment Volume and Added Value of Key Product Segments in Taiwan's IT Hardware Industry in 2008 107

Table 2-6-3 Shipment Value and Shipment Volume of Key Product Segments in Taiwan's IT Hardware Industry in 2009 111

Table 2-6-4 Taiwanese IT Software Industry Output Value from 2004 to 2010 112

Table 2-7-1 Main Categories and Products of the Machinery Industry 118

Table 2-7-1 Main Categories and Products of the Machinery Industry (Continued) 119

Table 2-7-2 Taiwan Machinery Production Value from 2004 to 2009 123

Table 2-8-1 Production Value of Taiwan's Vehicle Industry from 2002 to 2008 138

Table 2-8-2 Overview of Taiwan's Vehicle Industry Added-Values from 2002 to 2008 140

Table 2-9-1 Statistics on Production Value, Import and Export Value and Added-Value for the Taiwanese Steel Industry from 2004 to 2009 153

Table 2-9-2 Adjustment Measures in the Chinese Steel Industry from 2004 to 2008 154

Table 2-9-2 Adjustment Measures in the Chinese Steel Industry from 2004 to 2008 (Continued) 155

Table 2-10-1 Changes in Production Value of Taiwan’s Non-ferrous Metals 164

Table 2-10-2 Product Chain of Taiwan’s Aluminum Industry and Representative Makers 170

Table 2-10-3 Changes in Taiwan’s Aluminum Alloy Production 171

Table 2-10-4 Supply and Demand Analysis of Taiwan’s Aluminum Rolling Product Market 172

Table 2-10-5 Nickel Usage and Proportion 174

Table 2-10-6 Related Statistics of Taiwan’s Three Largest Nickel Import Products in 2007 175

Table 2-10-7 Related Statistics of Taiwan’s Two Largest Nickel Export Products in 2007 176

Table 2-11-1 Statistics of the Production of Upstream Basic Raw Materials in the Petrochemical Industry in Taiwan 182

Table 2-11-2 Analysis of the Added Value of the Petrochemical Industry in Taiwan from 2003 to 2009 188

Table 2-12-1 Production, Import and Export Volume of the Commonly Used Plastics in Taiwan from 2004 to 2008 201

Table 2-12-2 Demand for the Five Major Engineering Plastics in Taiwan from 2004 to 2008 202

Table 2-12-3 Synthetic Resin Production in Taiwan from 2004 to 2008 203

Table 2-12-4 Rubber Manufacturing Production Value in Taiwan from 2002 to 2008 205

Table 2-12-5 Taiwan Polymer Industry Added-value Analysis from 2004 to 2009 206

Table 2-13-1 The Output and Value-Added Ratio of Taiwan’s Textile Industries from 2004 to 2009 214

Table 2-13-2 Trade Statistics of Taiwan Textile Industries in 2008 215

Table 2-13-3 The RCA Index of the Textile Industries from 2003 to 2007 216

Table 2-13-4 Production of Nonwoven Fabrics in Taiwan in 2007 219

Table 2-13-5 Development Trend of Protective and Safety Fabrics 221

Table 2-13-5 Development Trend of Protective and Safety Fabrics (Continued 1) 222

Table 2-13-5 Development Trend of Protective and Safety Fabrics (Continued 2) 223

Table 2-14-1 Products and Related Industry 227

Table 2-14-1 Products and Related Industry (Continued) 228

Table 2-14-2 Major Biotech Industries in each County and City 231

Table 2-14-2 Major Biotech Industries in each County and City (Continued) 232

Table 2-15-1 Taiwan Pharmaceutical Industry Output Statistics from 2003 to 2009 244

Table 2-15-2 Taiwan Pharmaceutical Industry Import/Export Statistics from 2006 to 2009 246

Table 2-15-3 Top Ten Most Popular Drugs in Taiwan in 2007 247

Table 2-15-4 Top Ten Pharmaceutical Manufacturers in the Taiwan Pharmaceuticals Market in 2007 248

Table 2-15-5 Profitability Performance of Taiwan’s Publicly Listed Pharmaceutical Manufacturers for Accumulated First Three Quarters of 2008 249

Table 2-16-1 Taiwan’s Medical Device Industry Overview from 2003 to 2009 261

Table 2-17-1 Production Values of Different Food Industry Sectors in Taiwan from 2004 to 2009 268

Table 3-2-1 The Development of Taiwan’s Renewable Energy Industry from 2004 to 2009 292

Table 3-2-2 Thin-film Solar Cell Manufacturers in Taiwan 299

Table 3-2-2 Thin-film Solar Cell Manufacturers in Taiwan (Continued) 300

Table 3-2-3 Trend of Offshore Wind Turbines 301

Table 3-3-1 Netbook Features 309

Table 3-3-2 Hot-selling Gadgets and Related Information 314

====Figure Index====

Figure 1-2-1　Average Earnings of Employees and the Growth Rates of the Industry and Service Sector 15

Figure 1-2-2 Unemployment Rate 16

Figure 1-2-3　Consumer and Producer Price Indices 17

Figure 1-2-4 Fixed Capital Formation 18

Figure 1-2-5 Trade Surplus 20

Figure 1-2-6 The NT Dollar Exchange Rate against the US Dollar from 2nd January to 21st November 2008 22

Figure 1-2-7 Overnight Interbank Call-Loan Rate from 2nd January to 19th November 2008 22

Figure 2-1-1 The Trend of Global DRAM Market Price 40

Figure 2-1-2 Operating Profit Margin of Global DRAM Industry 41

Figure 2-1-3 Net Profit after Tax of the Four Taiwanese DRAM Vendors 42

Figure 2-1-4 Net Profit Rate after Tax of the Four Taiwanese DRAM Vendors 42

Figure 2-2-1 Industry Scope of Electronic Components Industry 49

Figure 2-2-2 Global Electronic Component Market Demand from 2004 to 2008 51

Figure 2-2-3 Global Electronic Component Market Shares in 2008 and 2012 (By Geographical Sectors) 52

Figure 2-2-4 Global Electronic Component Application Areas in 2008 and 2012 53

Figure 2-2-5 Production Value of Taiwanese Electronic Components Industry from 2004 to 2008 54

Figure 2-2-6 Added-Value of Taiwan’s Electronic Components Industry from 2004 to 2008 55

Figure 2-2-7 Changes in Global Electronic Component Market Scale between 2007 and 2008 56

Figure 2-3-1 2008 Ranking for Competing Nations in FPD Industry 75

Figure 2-4-1 Sony’s Procedure for Retrieving Precious Metals from Electronic Products 82

Figure 2-4-2 3D-IC structure 85

Figure 2-5-1 Forecast of Global Communication Equipment and Service Markets 90

Figure 2-5-2 Taiwan’s Communications Services Revenue from 2003 to 2008 91

Figure 2-5-3 Taiwan’s Telecommunications Equipment Output Value from 2005 to 2008 93

Figure 2-6-1 Overview of the Taiwanese IT Hardware Industry 102

Figure 2-6-2 Taiwanese IT Hardware Industry Shipment Value from 2003 to 2009 103

Figure 2-7-1 Machinery Industry Structure－Manufacturers Classified by Revenue 120

Figure 2-7-2 Taiwan Machinery Industry Production Value and Growth from 1982 to 2009 122

Figure 2-7-3 Taiwan Machinery Import and Export Value from 2004 to 2009 125

Figure 2-8-1 Automobile Industry Product Technology Correlations 135

Figure 2-8-2 Categorization of Motorcycle Products 136

Figure 2-8-3 Motorcycle Industry Technical Correlations 137

Figure 2-8-4 Actual Sales and Forecasts of Taiwan’s Domestic Automobile Industry from 2000 to 2009 146

Figure 2-8-5 Actual Sales and Forecasts of Taiwan’s Domestic Motorcycle Industry from 2000 to 2009 147

Figure 2-9-1 Demand Forecast of the Global Steel Industry from 2006 to 2015 150

Figure 2-9-2 Forecast of Growth Rate of Apparent Global Steel Consumption after the Financial Tsunami 151

Figure 2-9-3 Production and Apparent Consumption Statistics of Taiwanese Crude Steel from 1979 to 2008 152

Figure 2-9-4 Forecast of Global Economic Growth and Apparent Steel Consumption Growth 157

Figure 2-10-1 Product Chain of Taiwan’s Copper Industry 165

Figure 2-10-2 Copper Downstream Applications in Taiwan 166

Figure 2-10-3 Taiwan’s Refined Copper Consumption and Production Trends from 1998 to 2009 167

Figure 2-10-4 Import Change Analysis of Nickel Ingot from 2003 to 2007 176

Figure 2-10-5 Export Change Analysis of Nickel Ingot from 2003 to 2007 177

Figure 2-11-1 Supply and Demand Trend of Ethylene in Taiwan from 1998 to 2010 183

Figure 2-11-2 Supply and Demand Trend of Propylene in Taiwan from 1998 to 2010 184

Figure 2-11-3 Supply and Demand Trend of Butadiene in Taiwan from 1998 to 2009 185

Figure 2-11-4 Supply and Demand Trend of Benzene in Taiwan from 1998 to 2009 186

Figure 2-11-5 Supply and Demand Trend of Xylene in Taiwan from 1998 to 2009 187

Figure 2-11-6 Analysis of the Trend of International Crude Oil Prices from 2005 to 2008 189

Figure 2-11-7 Growth Trend of the Production Capacity of Ethylene in China from 2001 to 2010 190

Figure 2-11-8 Expansion of the Production Capacity of Ethylene in Middle Eastern Countries 191

Figure 2-12-1 Polymer Industry Production Value and Trends in Taiwan from 2001 to 2009 198

Figure 2-12-2 Plastic Product Value and Trends in Taiwan from 2001 to 2009 199

Figure 2-12-3 Rubber Product Production Value and Trends in Taiwan from 2001 to 2009 200

Figure 2-12-4 Synthetic Fiber Production Value in Taiwan from 2001 to 2009 204

Figure 2-12-5 Synthetic Rubber Raw Material Production Value in Taiwan from 2001 to 2009 205

Figure 2-13-1 Structure of the Textile Industries 213

Figure 2-13-2 Production Volume of Environmentally-Friendly Fibers in 2007 & 2010 218

Figure 2-14-1 Taiwan Biotech Industry Output Changes from 2003 to 2012 229

Figure 2-14-2 Taiwan Biotech Manufacturers’ Output Distribution 230

Figure 2-16-1 Product Classification Relations Diagram in Medical Device Industry 256

Figure 2-16-2 Global Medical Device Market Analysis 257

Figure 3-1-1 Worldwide Shipments of DCE Devices from 2006 to 2010 280

Figure 3-1-2 Worldwide Market Value of DCE Devices from 2006 to 2010 281

Figure 3-2-1 Structure of Taiwan’s Photovoltaic Industry 293

Figure 3-2-2 Structure of Taiwan’s Wind Power Industry 295

Figure 3-2-3 Structure of Taiwan’s Solar Water Heater Industry 297

Figure 3-3-1 A Comparison between iPhone 3G and iPhone 2G 305

Figure 3-3-2 Quarterly Shipments of iPhone 306

Figure 3-3-3 The Operation of App Store 306

Figure 3-3-4 Worldwide Quarterly Netbook Shipments 308

Figure 3-3-5 Selling Points of Netbook and Notebook 309

Figure 3-3-6 Eee PC Users can Access Eee Service via the Internet 310

Figure 3-3-7 The Business Model of Asustek’s Eee Service 311

Figure 3-3-8 Amazon is a Content Aggregator in the Kindle Business 313