April 17, 2014 12:00 am JST

Taiwan's IT turnaround

Taiwan's IT industry faces trouble. It rose to prominence over the last decade by embracing overseas technology and investing aggressively in mass production to seize a massive market share.

     Bad times loom. Taiwanese DRAM makers have taken a beating from their South Korean rivals. In the LCD panel market, Chinese makers have been eating into Taiwan's market share with even larger investments. Taiwanese information technology companies have also performed poorly in the dwindling personal computer market, and in the growing smartphone and tablet sectors. Even the once unassailable Taiwanese electronics manufacturing service industry shows signs of decline.

     There is some good news. MediaTek and Taiwan Semiconductor Manufacturing remain dominant players in the smartphone market. Other major players are working to change their business models and way of thinking. Will it work? It has to. Taiwan's future depends on it.