According to an analysis released by Taiwan's government-back Institute for Information Industry (III) says that China has replaced Taiwan as the world's top production center for IT hardware products and that the information technology products manufacturing capacity is between Taiwan and China are widening.
This year, China is expected to outpace Taiwan in total production value, the Institute said.

The data show that the value of IT products generated by Taiwan manufacturers is expected to reach US$50 billion, an increase of 15%, this year. China's IT hardware production this year is predicted to surge to US$35 billion, an increase of 20% compared to last year's US$28 billion. However, half of this total is likely to be shipped from Taiwan-owned factories on the China Mainland.

III predicted that 37% of the notebook computers supplied by Taiwan makers will be made in their Chinese plants and expected the figures to continue rising. Also, the forecast says that the figure for desktop computers shipped from China will reach 52% of total Taiwan's desktop computers export volume.

In 2001, Taiwan's IT industry, hit by the global economic recession, saw its hardware production value decline by 9.2%

Only liquid crystal panel monitors, digital cameras and server segments registered growth in production value and volume among Taiwan's IT industry in 2001. The notebook computer segment showed no growth, except in production volume.

A study shows that global PC companies selling computers combined with LCD panels are credited for the exploding growth of Taiwan's LCD industry last year.
Taiwan's output of LCD monitors last year rose 208.3% from a year earlier, to 9 million pieces, vale at 3.1131 billion US$, up 66%.

Last year, Taiwan made 12.17 million servers, valued at US$1.04 billion. This was 73.4% more than in 2000 and the MIC (the Market Intelligence Center of the III) says the Taiwan industry still has ample room to grow.

Taiwan made 8.821 million digital cameras valued at US$1.132 billion last year.
Production volume and production value increased respectively to 53.8% growth and a 95.5 % value increase. The MIC study indicates that Taiwan's digital camera industry is in the process of restructuring to develop high value-added types, i.e. higher resolution models.

Absorbing 36.9% of Taiwan's IT shipments, the U.S remained the largest market for the Taiwan industry in 2001. Europe and Japan were second and third., taking 26.8% and13.8% of Taiwan's exports.