Taiwan Connector Manufacturer Network in China
Author：Danny / time：2019-01-02 / The number of clicks：31
There is serious market pressure for Taiwanese connectors. Because of Foxconn’s size, it dominates the domestic connector market, thereby seriously stunting the development of other connector manufacturers. The total yearly revenue of the other manufacturers does not even add up to 50% of Foxconn’s yearly revenue. Additionally, Foxconn’s connector manufacturer has unique and complete patents for connectors. This completely dissuades other Taiwanese connector manufacturers from “copying” Foxconn’s developments. They are forced to avoid Foxconn’s patents. This directly forces the other manufacturers to focus on niche markets. The result of this is the current state of the Taiwan connector industry: small quantities with a diverse range of products.
Actually, in the connector market, China has progressed greatly regarding materials and product assembly. Chinese manufacturers have established a complete supply chain. Therefore, connector manufacturers have decided to move the industry to China. Through research and development and marketing to both countries, Taiwanese connectors can effectively display their advantages, thereby creating a niche. Material suppliers in China provide bronze, titanium copper, brass, etc. and electroplate materials, such as silver, nickel, gold, etc. Plastic materials include PPS, LCP, PC, PBT, PCT, etc. These diverse and complete material suppliers can provide Taiwanese connector manufacturers with more choice and convenience. Currently, the structure of the Taiwanese connector manufacturers is complete.
Although Taiwanese corporations in China are largely manufacturing plants, they cannot gain entrance to the Chinese market through sales. However, with the increasing demand for consumer electronics, some manufacturers have expanded into domestic market sales. This has not had a large effect. Overall, the growth of Taiwanese business competitiveness in China has been slow; with Chinese companies catching up quickly. Therefore, for Taiwanese connector manufacturers, the most effective long term strategy is to use China as a manufacturing center, improve their own internal management, increase research and development in Taiwan, and improve their sales abilities.
The effect of Taiwanese connector companies moving to China is shown in the total production value in 2000. The total production value of the entire Taiwan connector industry is clearly over 50 billion dollars, with 60 percent of the products being manufactured in China. However, it is estimated that, as Taiwanese connector manufacturers move to China, the production value will begin to decrease. On the other hand, growth in China will reach close to 24.5 percent. This is a trend of growth in China but decline in Taiwan due to the movement of connector manufacturers.