Aug 17, 2000

Sampo Corp.'s output of flyback transformers, a key monitor component, from its mainland China plant will hit 40 million in 2000, making it the world's largest manufacturer in the line.

The firm estimates its production volume of flyback transformers will represent about 30% of global market share this year. This will help the firm register NT$4 billion worth of revenue, with pretax profit of NT$500 million.

Over the past few years, the flyback transformer market has been under fierce competition. Sampo decided to move part of its production lines to the mainland in order to reduce production costs in 1999.

In an attempt to meet the hectic demand of flyback transformers for international monitor manufacturers in the mainland, the firm will move all its production lines to the mainland within the year. The firm's R&D center will remain in Taiwan, however, while the production lines are set up in both Dongguan in Guangdong province and Suzhou in Jiangsu province. The Dongguan plant will turn out 32 million units in 2000, compared with eight million units from Suzhou plant.

After years of research and development, the firm has become increasingly successful in the manufacture of flyback transformers for monitors and TVs. Most output is now absorbed by monitor manufacturers both at home and abroad.

The world's monitor market will register a growth rate of 12% in 2000, reaching sales of 110 million units, executives of the firm said. Sampo expects its flyback transformer plants in the mainland will be able to offer its output to international monitor manufacturers in China with an sufficient delivery time.