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  • Samsung-Daewoo Seen as Threat to Taiwan Monitor Makers
  • March 5, 1999 (TAIPEI) -- Makers of PC monitors in Taiwan are facing pressure from a recent agreement covering monitors between Samsung Electronics Co., Ltd. and Daewoo Electronics.
    Daewoo Electronics is a division of the Daewoo Group.

    The agreement will enable Samsung, already the world's largest maker of computer monitors, to raise its annual output to nearly 15 million units. Moreover, with its liquid crystal display (LCD) technology and upstream sources of picture tubes, Samsung is becoming a major competitive threat to Taiwan-based companies.

    Korea is Taiwan's leading rival in the global computer monitor market. Samsung reported an output of 9.6 million units in 1998, and the figure is expected to grow by around 10 percent this year.

    Daewoo produces 2 million to 3 million computer monitors a year, lagging behind local companies including Acer Peripherals Inc. and Lite-on Technology Corp.

    Following the Samsung-Daewoo agreement on a business swap -- in which Daewoo will acquire Samsung's auto unit in exchange for transferring its electronics unit to Samsung -- the monitor production under the Samsung group is expected grow. It will approach 15 million units this year.

    An executive at Royal Information Electronics Co., Ltd. said that small-scale companies in Taiwan will be hit harder by the Samsung-Daewoo alliance.

    Under pressure from big manufacturers, the smaller companies must develop niche markets, he said. Otherwise, they will likely be forced into mergers.

    An executive at the monitor department of ADI Corp. also noted that the Samsung-Daewoo alliance will generate greater pressure on local companies. Taiwan-based companies must develop products with greater ranges of applications to ensure their long-term success, he said.

    However, he also noted that some clients of Samsung and Daewoo may try to diversify their production sources by shifting some orders to manufacturers based in Taiwan.

    (Commercial Times, Taiwan)

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    Updated: Thu Mar 4 16:27:21 1999 PDT