Oct. 06, 2000

Major information technology firms in Taiwan are energetically advancing into the production of surface acoustic wave (SAW) filters, a key component used in wireless communication devices and opto-telecom components.

Acer Communications & Multimedia Inc., formerly known as Acer Peripherals Inc., led the pack early this year by acquiring a stake of around 50 percent in Tai-SAS Technology Co. Ltd., one of the top two SAW filter makers in Taiwan. Acer stressed that the purpose of the investment was to assure it an ample supply of SAW filters, adding that it would not become directly involved in the management of the acquired firm.

Acer also plans to invest the equivalent of US$129 million to expand production at its affiliate Darfon Electronics Corp., a maker of passive components.

Acer expects to ship five million cellular telephones this year. Monthly deliveries in the past few months have already climbed to about 1 million each. The company plans to increase the delivery volume and demonstrate several new cellphone models next year, including CDMA (code division multiple access ) GPRS ( general packet radio service ) and wireless application protocol (WAP) versions.

Quanta Computer Inc., a leading notebook PC maker that also has diversified into mobile phone production, recently announced plans to invest in Branchy Technology Co. Ltd. which will be coming out with SAW filters in early 2001.

Quanta has developed dual-band and tri-band GSM and CDMA mobile phones, and it plans to introduce a GPRS handset in the first quarter of 2001. Quanta estimates that it will ship five million cellular phones in 2001, up four times from this year.

Arima Computer Corp., another major Taiwan notebook PC maker, plans to jointly set up a SAW filter plant in China together with Siward Crystal Technology Co., a Taiwan maker of SAW filters and opto-telecom components.

Arima diversified into the mobile communication field already several years ago. The company's subsidiary Arima Communication Corp. began commercially producing dual- and tri-band GSM handsets in July this year. The company has won big OEM orders from Ercsson and other leading brands for its GPRS models. It expects to delivery two million handsets this year and 10 million next year.

First International Computer Inc., one of Taiwan's largest IT conglomerates, recently acquired a U.S. SAW filter maker to secure ample supply of the key components for the group's mobile phone affiliates.

According to statistics compiled by the Institute for Information Industry (III), Taiwan turned out the equivalent of US$105.2 million worth of cell phones last year. The figure is expected to soar nearly seven-fold to the equivalent of US$806.5 million this year.