Taiwan's Billion-dollar Tech Companies

Discussion in 'China' started by Martian, Apr 12, 2016.

  1. Martian

    Martian Respected Member Senior Member

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    To qualify for this list, a Taiwanese company must have at least US$1 billion in sales. Also, this is a technology list. I'm excluding banks, insurance companies, steel, property, construction, etc.

    I probably missed a few tech companies. I think I skipped the entire photovoltaic sector and machine tool industry.

    This list is only meant to provide an idea of the depth of Taiwan's tech industry. I think I discriminated against Taiwan's entire bicycle industry. Taiwan holds a lot of the patents for expensive mountain bikes.

    Hon Hai - $127 billion in sales
    Pegatron - $32.2 billion
    Formosa Petrochemical - $31.4 billion
    Quanta Computer - $29.7 billion
    TSMC - $25 billion
    Compal Electronics - $23.1 billion
    Wistron - $22 billion
    Asustek Computer - $15.5 billion
    Inventec - $14.9 billion
    Formosa Chemicals - $14.5 billion
    Innolux - $14.2 billion
    AU Optronics - $14 billion
    Acer - $12.1 billion
    Lite-On Group - $10.93-12.5 billion
    Synnex Technology International Corp. - $10.36 billion
    Nan Ya Plastics - $10.2 billion
    Chungwha Telecom - $7.7 billion
    Advanced Semiconductor Engineering (ASE) - $7.4 billion
    Formosa Plastics - $7.3 billion
    MediaTek - $7.2 billion
    HTC - $6.75 billion
    Delta Electronics - $5.8 billion
    Chi Mei Corporation - $5.61 billion
    TPK Holding Co., Ltd. - $4.97 billion
    UMC - $4.3 billion
    Tatung Co. Ltd. - $3.779 billion
    Qisda Corp. - $3.73 billion
    Cheng Uei Precision Industry Co. Ltd. - $3.32 billion
    Siliconware Precision Industries Co., Ltd. (SPIL) - $2.67 billion
    Micro-Star International (MSI) - $2.465 billion
    Zhen Ding Technology - $2.14 billion
    Inotera Memories - $2 billion
    Elitegroup Computer Systems Co. (ECS) - $1.98 billion
    Unimicron - $1.87 billion
    Gigabyte Technology - $1.7 billion
    HannStar Board Corp. - $1.52 billion
    Largan Precision - $1.4 billion
    Nanya Technology Corporation - $1.4 billion
    Powerchip - $1.33 billion
    Novatek - $1.32 billion
    MiTAC - $1.26 billion
    Winbond Electronics Corp. - $1.19 billion
    Advantech - $1.12 billion
    Everlight - $1.1 billion
    A-Data Technology Co Ltd. - $1.05 billion
    D-Link - $0.96 billion
    Realtek - $0.95 billion
    Epistar - $0.94 billion
    Himax Technologies - $0.84 billion
    Vanguard International Semiconductor Corporation (VIS) - $0.78 billion
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    References:

    The World's Biggest Public Companies List - Forbes
    Morningstar
    Bloomberg
    Company websites
     
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  3. Martian

    Martian Respected Member Senior Member

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    What does Taiwan's $60 billion merchandise trade surplus mean?

    For 2015, Taiwan's merchandise trade surplus is running at $5 billion per month. This means Taiwan's tech sector is stronger than ever.

    For example, TSMC had a net income of $8 billion last year. This is expected to grow to a $10 billion net profit this year. MediaTek's profit has surpassed $1 billion. Some Taiwanese tech companies are growing very quickly.

    On my top 50 list of Taiwanese tech companies (e.g. semiconductors, electronics, and specialty chemicals), most of the sales revenue data were from 2013. A few were from 2014. Practically every company on the list will have sales of over $1 billion this year, with the exception of Vanguard.

    For example, Himax Technologies had quarterly sales of $227 million (see citation below). Annualized, Himax sales for 2015 will exceed $1 billion.

    Bank of America Downgrades Himax Technologies to Underperform (HIMX) - American Banking News
    "Himax Technologies (NASDAQ:HIMX) last issued its quarterly earnings data on Thursday, February 12th. The company reported $0.09 earnings per share for the quarter, meeting the analysts’ consensus estimate of $0.09. The company had revenue of $227.20 million for the quarter, compared to the consensus estimate of $225.05 million."

    The interesting aspect of Taiwan's hi-tech sector is the huge number of companies bubbling below $1 billion in sales. Between $100 to $900 million, there is an army of Taiwanese tech companies fighting their way to the top. For PCB companies alone, there are about 20 Taiwanese tech companies in the medium-size range.

    Also, Taiwan tech superstars tend to come out of nowhere. They are usually spun off as independent units and some outgrow their parent company. For example, MediaTek was spun out of UMC in 1997. Today, MediaTek ($7.2 billion) has larger sales than UMC ($4.3 billion)!

    I think Hon Hai is starting to focus on industrial robots. Hon Hai's future tech business will look different from today.

    Pegatron was spun off from Asus in 2010.

    Vanguard International Semiconductor Corporation (VIS) has an assured future, because it is an affiliate of TSMC.

    The point is that Taiwan has a very dynamic tech industry. Companies are constantly being spun off and some grow into giants in their own right. You never know which Taiwanese company will become the next billion-dollar behemoth.

    It's a fun past-time to watch the constant jockeying among Taiwan's tech companies. Will Taiwan's Genius Electronic Optical Co. Ltd. (the mouse scroll-wheel patent holder) succeed in growing from $0.3 billion to become a billion-dollar company? Check back in ten years to find out!
     
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  4. Martian

    Martian Respected Member Senior Member

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    Hon Hai had $4.17 billion in net profit for 2014

    Taiwanese companies are highly profitable. Many of them generate billion-dollar plus in net income. This funds research and development into the next generation of technology. Also, it allows the companies to diversify into new high-tech businesses. I would describe Taiwan as being in a virtuous cycle upwards. Above-average profits from Taiwanese patents incorporated into Taiwanese products provide the monetary resources for new and exciting products.

    Profit at iPhone Assembler Foxconn Rose 22% Last Year - WSJ

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    "Hon Hai said its net profit in 2014 rose to 130.53 billion new Taiwan dollars ($4.17 billion) from NT$106.69 billion a year earlier. Revenue rose 6.5% to 4.21 trillion new Taiwan dollars from NT$3.95 trillion a year earlier. The company didn’t disclose quarterly earnings."
     
  5. Martian

    Martian Respected Member Senior Member

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    EE Times: MediaTek sells 550 million chips per year

    Taiwan's MediaTek sells 400 million smartphone, 100 million smart TV, and 50 million tablet chips annually (see EE Times citation below).

    MediaTek is notable for being the first company in the world to build a true octa-core chip.[1]

    Also, MediaTek was the first to build a true octa-core with LTE.[2]

    Finally, MediaTek is closing the gap with market leader Qualcomm's Snapdragon 810.[3]

    References.

    1. MediaTek launches world's first true octa-core mobile chip, first devices due end of year
    2. MediaTek announces world's first 4G LTE octa-core processor
    3. MediaTek Takes on Snapdragon 810 with New 64-bit Chip
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    Why MediaTek Pushes Cross-Device Sharing | EE Times

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  6. Martian

    Martian Respected Member Senior Member

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    Taiwan's Catcher had $1.75 billion in sales and $568 million in net income for 2014

    I have been uncertain as to whether Catcher qualifies as a high-technology company. It makes "magnesium- and aluminum-alloy chassis" for notebook computers and smartphones.

    Anyway, I have included Catcher in this thread. You can make up your own mind whether it qualifies as a high-tech company.
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    Login to DIGITIMES archive & research

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    Taiwan's Catcher earns record income NT$17.87 b in 2014 | Customs Today Newspaper

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  7. Martian

    Martian Respected Member Senior Member

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    Taiwan's 1,042 public manufacturing companies had record results in 2014

    "Taiwan’s 1,042 listed manufacturing companies posted best-ever sales, profitability and R&D numbers in 2014...." (see citation below).

    Think of Taiwan as China's R&D center. Taiwan is posting record revenues, profitability, and R&D investment. This bodes well for China. Taiwanese technology keeps migrating to the mainland.

    TSMC (splinter group) --> SMIC
    MediaTek employees --> actively sought by Spreadtrum
    Taiwan's Andes (chip designer since 2005) --> headed to China in five to ten years
    Taiwan's spin-FET transistor (1,000 times faster than Intel's 10nm transistor) --> headed to China in ten years
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    Taiwan Today - Taiwan manufacturers turn in top performances

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  8. Martian

    Martian Respected Member Senior Member

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    Biotechnology is Taiwan's next big industry

    From the citation below, Taiwan's biotechnology sector is growing at 24% year-over-year.

    Since the New Taiwan Dollar to US Dollar exchange rate is about 30 to 1, it means Taiwan's biotech industry at the three large science parks had revenues of US$100 million for the first two months of the year. Annualized, Taiwan's biotech industry is worth $600 million.

    Finally, Taiwan's high-tech sector is growing at a healthy pace of 19% year-over-year.
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    Taiwan science park January-February total revenues top NT$365 billion, says MOST

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  9. Martian

    Martian Respected Member Senior Member

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    Taiwan's Five Largest Chip-Design Companies

    1. MediaTek. It specializes in SoC (ie. System on a Chip). Most MediaTek SoCs are used in smartphones. MediaTek is the world's third-largest fabless design company behind Qualcomm and Broadcom.

    2. Novatek Microelectronics - LCD driver IC supplier.

    3. Realtek Semiconductor - WLAN (ie. Wireless Local-Area Network) chip specialist.

    4. Himax Technologies - Design of panel driver ICs.

    5. Richtek - Analog chips.
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    ESMT, Etron enter Taiwan top-10 IC design houses in 1Q15 | DigiTimes

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  10. Martian

    Martian Respected Member Senior Member

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  11. Martian

    Martian Respected Member Senior Member

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  12. Martian

    Martian Respected Member Senior Member

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  13. Martian

    Martian Respected Member Senior Member

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  14. Martian

    Martian Respected Member Senior Member

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    Taiwan's Motech Industries grew its revenue by 24% in 2015 to $750 million.

    At its current rate of revenue growth, Taiwan's Motech Industries will cross the $1 billion revenue mark within three years.

    Motech Industries is a manufacturer of crystalline silicon solar cells.

    The average New Taiwan dollar ($NT) to US dollar exchange rate is 32 $NT to 1 $US.

    Revenue of NT$24.75 billion = $750 million US dollars
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    Motech Industries, TSEC December revenues up | DigiTimes

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  15. Martian

    Martian Respected Member Senior Member

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    Taiwan's Sino-American Silicon had wafer sales totaling $848 million in 2015.

    Taiwan's Sino-American Silicon (SAS) should have a billion-dollar annual revenue in the next three years.

    Firstly, as the citation below shows, Sino-American Silicon is planning to expand its capacity (which leads to increased sales).

    Secondly, the New Taiwan Dollar is fluctuating against the US Dollar. With Taiwan's $52 billion merchandise trade surplus in 2015, the Taiwanese currency is bound to bounce back.
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    Sino-American Silicon wafer sales remain flat through year-end but expansion planned | PV-Tech

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  16. Martian

    Martian Respected Member Senior Member

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  17. HariPrasad-1

    HariPrasad-1 Senior Member Senior Member

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    This small country is doing exceedingly well. Now i know why china has a bad eye on Taiwan.
     
  18. Bahamut

    Bahamut Senior Member Senior Member

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    Hope India and Taiwan have more co operation in R&D and industry.
     

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