Cheng Uei Precision, Hon Hai Precision compete for handset connector orders

Taipei, Dec. 7, 2004 (CENS)--Even run by the same family, Cheng Uei Precision Industry Co., Ltd. And Hon Hai Precision Industry Co., Ltd. Are intensively competing for orders for mobile-phone connectors, currently dominated by Japanese suppliers.

Taiwan's industry watchers analyzed Japanese suppliers, which now control 80% of the world's handset-connector market, would begin to farm out contracts for the devices to Taiwanese dedicated manufacturers in big volume next year on low-cost concern. Thriving orders from them are expected to largely boost revenue growth of Taiwanese connector suppliers next year.

Both Cheng Uei and Hon Hai have scored major accomplishments in handset-connector sector since early this year. Cheng Uei has secured orders from the world's top five handset suppliers while Hon Hai has acquired a Motorola facility in Mexico and handset-module maker Eimo Oyj of Finland.

Cheng Uei projected its guidance for next year at NT25 billion (US$781 million at US$1:NT$32) considering Nokia and Sony-Ericsson would double orders to it. The Taiwanese company's executives pointed out that their company would take off sharply next year as it had snatched up only barely 1% of the world market.

Hon Hai has become Nokia's largest overseas contract supplier of mobile phones since last year and is expected to be the most advantageous supplier among Nokia's connector suppliers.

Jess-Link Products Co., Ltd., another Taiwanese handset-connector supplier, has landed orders from Japanese supplier Hosiden. The company's executives pointed out that their company still has room to survive in the competition mostly intensified by Cheng Uei and Hon Hai.