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The Rise of Chinas Red Supply Chain and Taiwan's Countermeasures

Published By :

Market Intelligence & Consulting Institute

Published Date : Sep 2015

Category :

Supply chain

No. of Pages : 22 Pages

The emergence of red supply chain in China has been exerting increasing pressure on existing players in the high-tech sector, including Taiwanese companies. While some predict Taiwan's IT industry will be replaced soon, others are confident in Taiwanese companies' ability to sustain lead with smart manufacturing technologies. This report provides an overview of China's red supply chain and driving factors behind its emergence; looks closely at its impacts on the global PC, smartphone, and tablet supply chains and provides insights on how to respond to such threat in the long run by identifying several countermeasures.

Table of Contents

1. What is Red Supply Chain 

2. Rise of Red Supply Chain and Its Threats 

2.1 Contributing Factors to Red Supply Chain Formation 

3. How Taiwan View the Rise of Red Supply Chain 

4. Countermeasures 

4.1 Strategy I: Keeping Technological Lead? 
4.1.1 Accelerated Production 
4.1.2 Differentiated Technology 
4.1.3 Product Customization 
4.2 Strategy II: Developing Key IoT Applications 
4.2.1 Extending Value Activities to System Integration and Smart Services 
4.2.2 Stimulating Innovation Strength by Effectively Utilizing the Resources 
4.3 Strategy III: Empowering Taiwan with Smart Manufacturing Technologies 
4.3.1 Encouraging Taiwanese firms to Bring Production Lines Back to Taiwan 
4.3.2 Establishing a New Design and Manufacturing Service Center 

5. Conclusion 


Glossary of Terms 
List of Companies 

List of Table

Table 1: Foreign Companies Suspected to Violate China's Anti-Monopoly Law

List of Chart

Figure 1: Global Notebook PC Market Share by Branded Vendor, 2012-2015 
Figure 2: Global Desktop PC Market Share by Branded Vendor, 2012-2015 
Figure 3: Global Tablet Market Share by Branded Vendor, 2012-2015 
Figure 4: Growing Importance of Chinese Players in Global PC Supply Chain
Figure 5: Chinese Suppliers' Stance in Smart Handheld Devices 
Figure 6: Chinese Suppliers' Stance in Branded Low-cost Tablets 

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