Industrial PC makers craft China presence: experts

Taiwan manufacturers' cross-strait expansion began years ago, as they made industrial PCs that they hoped to sell to different parts of China.

Yet, many of these Taiwan manufacturers failed to build a presence in China due to various negative factors. For example, Chinese manufacturers cut prices aggressively to gain an advantage.

Also, many Taiwanese manufacturers lacked knowledge of the Chinese market and therefore failed to find specific niches for their products. Finally, Taiwan operators had a difficult time dealing with clients, many of whom repeatedly missed their payment deadlines.

As a result, many Taiwanese industrial PC manufacturers withdrew from the Chinese market after this first wave of arrivals. Among those who remained were Advantech and the ICP Group.

Yet China's growth continued to attract Taiwanese manufacturers, and soon there was a second wave of migration of local industrial PC manufacturers to the mainland. Taiwanese firms involved in this trend included Adlink Technology and ICP DAS Co. More recently, Posiflex and Flytech Technology expanded to the other side of the strait.

These manufacturers said they still face various difficulties in China, the biggest of which is competing with counterfeiters. It is often the case that a few days after a company has launched its products, pirated versions — priced 30-percent lower — are found in the market, experts said.

“This is something that's hard for us to deal with,” one company said. “We're powerless against the bootleggers.”

Some manufacturers, meanwhile, are less pessimistic, saying they win the business and trust of clients with their products' quality and performance.

“To many Chinese clients nowadays, price isn't the only determining factor,” another firm said. “They are also demanding safety and stability of products, and this is a good thing for Taiwan manufacturers who offer things that are more expensive yet are much better.”

According to Taiwanese manufacturers, room for further growth is limited in first-tier Chinese cities, where the market for industrial PCs is saturated.

They however see huge growth potential in second-tier cities, where government support for industrial development is provided.

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