Big factory consolidation + market transfer information industry

The global information industry is undergoing a major transformation, and after the peak driven by smartphones, another wave of innovation is on the horizon. Photo / Associated Press, Xinhua News Agency. "I don't understand, this world is changing fast" – these lyrics reflect not only the rapid changes in China since its reform and opening up, but also the accelerating pace of the digital revolution. The information revolution has unfolded in waves, and now, as the smartphone market matures, we are witnessing the emergence of new trends that could reshape the tech landscape. Emerging markets are becoming key drivers of growth, offering vast business opportunities and potential for expansion. As traditional markets become saturated, companies are turning their attention to developing regions where demand is rising rapidly. These markets are not just about low-cost devices anymore; they're also creating new demands for customized solutions that cater to local needs. For instance, the global smartphone market outside of China has grown significantly, with emerging markets contributing over 850 million units in 2017 alone. Similarly, tablet shipments to these regions have increased, although growth has been somewhat limited by slower device adoption. Meanwhile, the PC market is shifting, with notebooks gaining more traction in emerging economies, while desktops face declining interest. This shift has led to a reallocation of resources and strategies among global tech players. Companies like Huawei, Xiaomi, and Lenovo are expanding their presence beyond China, leveraging the growing demand in emerging markets. At the same time, mergers and acquisitions have become a common strategy, with large firms consolidating their positions and smaller players either being acquired or exiting the market. Notable deals include Dell’s acquisition of EMC, Western Digital’s purchase of SanDisk, and Avago’s massive buyout of Broadcom. In Asia, MediaTek has expanded through strategic acquisitions, while Sun Moonlight has taken a leading role in IC packaging and testing. Chinese companies have also made significant moves, acquiring foreign tech firms to strengthen their global footprint. However, even in this competitive environment, niche markets still offer opportunities. Brands like MSI, Xiaomi, and Micromax have successfully tapped into specific segments, such as e-sports PCs, online pre-sales, and localized mobile phones, respectively. These companies have managed to carve out space by focusing on unique user needs and building strong local partnerships. Looking ahead, Taiwan's high-tech industry faces both challenges and opportunities. While it has a strong manufacturing base, it must address issues like weak brand recognition, supply chain dependency, and limited overseas awareness. To succeed in emerging markets, Taiwanese companies should focus on three key strategies: market joint ventures, industry complementarity, and co-creation of business opportunities. By collaborating with local partners, integrating into regional supply chains, and customizing products to meet local preferences, Taiwanese firms can find new growth avenues. This approach not only helps them avoid direct competition with global giants but also allows them to tap into under-served markets. In a slowing global high-tech market, the future lies in innovation, localization, and strategic adaptation. For Taiwan’s industry, embracing these changes could mean breaking free from traditional structures and finding new paths to sustainable growth. (Author: Senior Industry Analyst at MIC)

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