Samsung to buy 25% more products in Taiwan in 2006

Samsung Electronics will buy US$2.5 billion worth of electronics products - including liquid-crystal displays (LCDs) and semiconductor devices - in Taiwan this year, 25% more than 2005's US$2 billion, according to Samsung's Taiwan procurement office.

The Taiwan branch's executives noted that Samsung had increased procurements in Taiwan every year since it was established in 1987, with the procurement value rising to US$670 million in 2003, US$1.1 billion in 2004, and US$2 billion last year.

The South Korean electronics giant's contract suppliers in Taiwan include Elite Semiconductor Memory Technology Inc., Mstar Semiconductor Inc., Richtek Technology Corp., Wintek Corp., Advanced Optoelectronic Technology Inc., Auras Technology Co., Ltd., HannStar Board Corp., Richtech Technology Corp., TennRich International Corp., Tripod Technology Corp., and Waffer Technology Corp.

Semiconductors and liquid-crystal display (LCD) panels accounted for about 70% of the money Samsung spent on products bought from Taiwanese suppliers over the past few years. The panels included those carrying Samsung's brand names.

Market-research organization DisplaySearch's studies showed that Samsung snatched up 9.7% of the world market for LCD TVs in the third quarter last year, helping the company secure the No. 3 ranking for worldwide LCD TV sales. Sony was the No. 4 supplier, controlling 8.7% of the market.

Samsung now has household-appliance, semiconductor, and flat-panel branches in Taiwan. Samsung SDI, which specializes in digital mobile products, also has opened a branch in Taiwan.

source & copyright: CENS