Seiko Epson to buy more products from Taiwan next year

Taipei, Dec. 4, 2003 (CENS)--Seiko Epson Corp., currently the world's largest color-printer supplier, will buy 20% more products next year from Taiwan than this year, likely pushing up its total 2004 procurements from the island to NT$12 billion (US$352.9 million at US$1:NT$34).

Seiko Epson's executive vice president, Norio Niwa, recently announced the firm's decision in Taipei. He said his company, based on cost concern, will contract Taiwanese chipmakers and chip assemblers to make chips and consign information-technology manufacturers to make computers, printers and other peripherals next year.

Taiwanese manufacturers expected to benefit from the big procurement project include chip assemblers Advanced Semiconductor Engineering (ASE) Inc., Kyec Yuan Electronics Co., Ltd. And Siliconware Precision Industries Co., Ltd.; and IT suppliers BenQ Corp. and Asustek Computer Inc.

In line with its cost-efficiency strategy, the company has switched its super-twisted nematic liquid-crystal display (STN LCD) production in Taiwan to mainland China and Southeast Asian nations. Also, it has increased outsourcing driver chips for the displays from Taiwanese chipmaker Nanya Technology since early this year.

The Japanese business conglomerate, which runs 114 business at home and overseas, is estimated to have revenue of 1.4 trillion yen (US$12.8 billion at US$1:109 yen) and its image-business group is expected to score revenue of around 700 billion yen (US$6.4 billion) throughout this year. Since early this year, the firm has highlighted its "3I" product strategy, which addresses production of image on paper (printers), image on screen (projectors) and image on glasses (display panels).

Seiko Epson ranks number one in the global market for phone-use color LCDs, commanding a market share of about 30%. Its major LCD clients include leading handset makers Nokia Corp. and Samsung Electronics Co. The firm is also strong in digital photo printing technology. It now enjoys a dominant 53% share of the ink-jet printer market in Japan, where home photo printing is growing at a rapid pace.