The China Economic News (CENS) writes that many Taiwanese companies involved in the manufacture of medical equipment are reaping rich rewards. According to CENS:
Impressed by the lucrative market for medical electronics, many Taiwanese IT manufacturers are gearing up to make foray into this field.
A study recently released by the government-backed Industrial Technology Research Institute (ITRI) shows that the island`s medical-equipment industry generated revenue of NT$74.9 billion (US$2.3 billion at US$1:NT$32) last year, accounting for less than 1% of global market. Also, the institute`s study shows that the Taiwan industry has posted average revenue growth rate of 16.5% in each of the past few years.
Y.W. Shau, General Director of ITRI`s Medical Electronics and Device Technology Center, noted that medical electronics still has ample room for growth as this segment now accounts for 35% to 38% of the annual global market demand of US$196 billion.
Taiwanese IT manufacturers including Hon Hai Precision Industry Co., Ltd., Quanta Computer Inc., Tatung Corp., Compal Electronics Inc., Kinpo Electronics Inc., Ritek Corp., and Johnson Health Technology Co., Ltd. have mapped out their medical-electronics schemes.
Shau noted that although Taiwan`s medial-equipment industry has developed excellent medical-electronics technologies, the industry is short of international marketing specialists. On top of that, the Taiwan industry is completely dominated by small- and mid-size manufacturers, making it hard to compete against international players.
Another disadvantage of the Taiwan industry is the extremely cautious attitude of the manufacturers towards technology cross-licensing with international players, eroding their competitiveness in international market.
The article is spot on. As many computer products have become increasingly commoditized more and more tech companies have been searching for growth sectors within the industry. Many (including my company) have jumped into developing medical computers and monitors. These are high-end products that have very demanding performance parameters. Especially targeting the medical PC industry has reaped rewards and the premium charged on these products is fairly high. However, as the article quite rightly states, there are still some issues including marketing, that need to be resolved.
CENS: Taiwanese IT Makers Seek Pay Dirt in Medical Electronics Market
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