Taiwan-based makers of notebook components such as connectors and stamped parts are unlikely to see any significantly growth in revenues in 2016 as demand for desktops, notebooks and smartphones has been dropping, while competition from China makers continues increasing, according to sources from the related upstream supply chain.
The worldwide connector industry's production value grew about 5% on year in 2015 and many related makers are aggressively pushing niche applications or landing orders for high-price products to maintain their growth.
The sources pointed out that they are seeing weakening order visibility for consumer electronic products and are also seeing difficulties to land orders from car electronics, aerospace, military or industrial industries in a short time, picking orders with good profit has become an important task for them for 2016.
Since most Taiwan-based connector makers have been focusing mainly on the PC industry and only have limited development on niche applications, Taiwan's connector industry's production value has seen much weaker growth than that of worldwide during the past few years.
With competition from China-based makers growing fierce, the sources are also concerned that some Taiwan-based makers may phase out from the market. |