component manufacturers poses a significant threat to more established Taiwanese peers,
according to a report that
Ratings Services' Global Credit Portal.
Taiwan Ratings is the
The report highlights the likelihood that Taiwanese credit profiles are under growing
pressure from the rise in Chinese competitors, particularly in the branded hardware and
TFT-LCD panel sectors, but the degree of impact differs among individual players.
strengthen their local supply chain over the next few quarters," said Taiwan Ratings
"Technology leadership and product and service differentiation will likely be the key
factors helping Taiwanese technology firms sustain their market shares in the long term."
curve as the global hub for IT manufacturing have supported rapid growth in
sector over the recent years, and that is likely to continue for several years to come.
In addition, the Chinese government has been very supportive of the IT sector through
government policy, which promotes the development of important technology segments
including semiconductors and thin-film-transistor liquid crystal display (TFT-LCD)
According to the report,
highest competition risk from
semiconductor and electronic manufacturing services sector should be able to cope with the
"The growth of
local supply chain in
companies in the regional IT supply chain," said Hsu.
"Nonetheless, we believe that the majority of
continue to benefit from scale advantages, product differentiation, and technology
leadership, to offset the competitive threat for now. But commoditized product
manufacturers are likely to suffer from rising Chinese competition." he noted. (KL)
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