Taiwanese household appliance suppliers team on frequency conversion air conditioners

Taipei, June 29, 2005 (CENS)--Leading Taiwanese household-appliance suppliers including Rechi Precision Co., Ltd. Kolin Inc. Tatung Co., and Sampo Corp. have moved to jointly develop frequency-conversion air conditioners as part of their plan to cut dependence on Japanese technology sources.

These companies are cashing in on resources offered by the government-backed Industrial Technology Research Institute (ITRI) to develop the air conditioners. They plan to roll out frequency-conversion modules next year in preparation for anticipated booming demands.

Insiders of Taiwan's household-appliance industry point out that Japanese suppliers have controlled the technology for making frequency-conversion rotary compressors used on air conditioners and have been unwilling to export the technology. Expecting frequency-conversion air conditioners to snatch up around 20% of Taiwan's air-conditioner market, local household-appliance suppliers have decided to develop the technology on their own.

Some local suppliers estimate locally-developed air conditioners to be at least 20% less expensive than Japan-made models.

Kolin's executives estimate Taiwan's air-conditioner market at around 900,000 systems a year. They note frequency-conversion models accounted for barely 10% of the island's air-conditioner market last year. So far this summer, consumption of the air conditioners has increased sharply in Taiwan thanks to vigorous promotions by Japanese suppliers including Matsushita Electrical Industrial, Hitachi and Sanyo.

Konlin's executives note that the air conditioners will soon become a trend considering its power-conservation merit. However, the air conditioner's compressor requires complicate precision technology to build. Besides, it uses the coolant that is not same to the one used in traditional machines.

Compressor maker Rechi's engineers point out that a frequency-conversion air conditioner's three key components are compressor, electronics controller and motor. The company and its strategic partners in the deal are mostly focusing their efforts on electronics controllers as its off-the-shelf compressors and motors can be used on frequency-conversion air conditioners.