With rising demand for Taiwanese telecom products in both developing and mature markets, the production in the industry grew significantly in second quarter of 2008.

According to the Industrial Economics and Knowledge Centre, the overall output of Taiwan’s local telecommunication in terms of value during Q2 2008 was at $6.20 billion, indicating its 25% annual growth.

Overseas production contributed 70.4% to the total output value in the second quarter of 2008 and it came mostly from the Chinese plants. Moreover, the output value of the telecom industry in the first half of 2008 was logged at $ 11.7 billion, an increase of 17.3% from the same period last year. Shipments of the local GPS makers surged 4.8% in the second quarter of 2008.

The output of Taiwan’s telecommunication industry increased in the second quarter of 2008 due to increased shipments of own-brand products and high-performance products in response to rising demand throughout the world. For instance, the demand for Taiwan’s wired WiMAX equipment is continuously growing at a rapid pace in emerging economies. The telecom industry has also noticed robust demand for its low-end mobile phones in emerging countries and for smartphones in developed countries.

One of the key reasons for immense increase in the production of telecom products in Taiwan is increasing order for iPhone by Apple, resulting in intense pressure on suppliers to raise their production to meet the global demand.

The production of Taiwan’s telecom industry is to maintain the current growth in coming years that will help in meeting the global demand. Among the fast growing segments of the industry, GPS and mobile phones are the major drivers of telecom industry.

According to a new report Taiwan’s telecom industry is growing at a rapid pace on the back of high production and contributing to the country’s GDP annually. Under such scenario, suppliers should leverage from their cutting-edge competitiveness and strong demand for their products worldwide. They should also collaborate with software and platform developers to create value-added software which will help in meeting growing requirements of IT industry and to maintain competitive edge.

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