Computex 2005 Photo Coverage
Taipei, Taiwan
May 31 - June 6, 2005
Last year the WAVE noticed that Computex had changed from previous years. That change is even more pronounced this year. Recall that Taiwan gained its market position originally as a low cost producer. That has been completely supplanted by China. What is Taiwan to do? It had to go up market and diversify. That is exactly what we see here. What Taiwan has now become is the manager and engineering side of the mainland China supply chain. Yet, China is moving to overtake Taiwan here. We wonder how long the Taiwanese advantage can last.
The Vendors
This is the best PC hardware show in the world. But it is more than this. For example, the single topic pavilions included:
Software
Mobile Phone Components
Japan
Security
IP Telecom
Mobile Internet
IC Application
HSCF
CarTronics
Home Entertainment
Home Networking
Linux
In some areas, such as security, the depth of product was light. But, just the existence of so many pavilions indicates the changes happening in the Taiwan supply side market. We noted other trends this year.
As the WAVE did a “walk around” of the computer stores, we saw fewer system builders. But, in the same spaces were many more notebook-only retail stores. It seems as if notebooks have become the PC of choice.
Mouse, keyboards and PC cases suppliers have been replaced by the following products either in-commodity or going-to-commodity status:
Flash memory based products such as USB Drives or flash memory modules
Web cameras
Disk storage systems, especially RAID
Digital still cameras
MP3 audio players
iPod accessories
LCD monitors or televisions
Networking, especially wireless
Any form of Bluetooth
Cooling is a big issue. There are more fan companies than we have seen before and with cute display case-like designs, but we kept reminding ourselves that this just a FAN with cooling fins.
Rack mounted systems are where the cabinet innovation is. This includes storage arrays also. We have not seen any blade cabinets, however.
The Intel AMD rivalry is intense. AMD announced Athlon 64 x2 dual core processor products and the press event was packed. Intel was using the theme Advancing Digital Innovations yet its large display area was poorly attended compared to AMD’s. While Intel touted innovation, it seemed like AMD was delivering it.
Bluetooth is everywhere. This technology has done a superb job of disappearing into products.
Software is hardly a blip on the conference landscape, especially from Taiwanese companies. The Microsoft booth was again touting its role in the embedded market.
Much of the industrial design has become world class. A number of companies, mostly the larger suppliers, were showing off award winning products.
The WAVE sees this as a direct reflection of how Taiwan is adapting to the shift to China for both design and manufacturing. Yet, what is missing?
Taiwan does not have a strong systems environment but more component focus. As a result, it will be difficult to continue to rise up the solution supply chain.
The lack of software presence is a major factor limiting Taiwan. It is noted that the Indian companies do not even have a presence here. We would expect to see more of this if Taiwan was more system focused as they constructed relationships with the Indian software companies.
With a few exceptions Taiwan has not built brand name recognition.
One only has to look at Korea to see how well they have done, from cars
to consumer electronics.
Updated on 2/18/06
