(23 May 2006 7:00 pm)

MUMBAI: Mainland China and Taiwan are expected to export over 54 million broadband communication products in 2006 worth over $2 billion -- up 55 per cent year-on-year according to Global Sources' China Sourcing Report: Broadband Communication.

Mainland China is expected to ship 22.3 million units in 2006, while Taiwan is projected to export 31.8 million units. Report publisher Mark Saunderson said, "Broadband device manufacturing in mainland China and Taiwan relies heavily on exports. In 2006, sales of broadband products are expected to reach about $2.4 billion, with exports accounting for at least 85 per cent, or more than $2 billion."

Despite growing demand, manufacturers say export prices will fall in 2006.

Among Taiwan makers, 64 per cent expect prices to fall between 10 and 20 per cent. Among mainland China makers, 84 per cent said prices will remain stable or drop by up to five per cent in the months ahead.

The survey also shows:

• Taipei and Hsinchu are the main manufacturing hubs in Taiwan
  
• Shenzhen and Dongguan are the key production centers in mainland China
• Taiwan makers are developing voice and multimedia over DSL/cable products, while Mainland suppliers are focusing on faster speed and extended transmission distances
• Makers serve brands and customers worldwide including Dell, Fujitsu, Italy Telecom, LG, Linksys, Lucent, Siemens and Thomson

China Sourcing Report: Broadband Communication examines manufacturing, technology and pricing trends for cable and digital subscriber line (DSL) modems, gateways, routers, optical networking equipment and related products. It profiles 27 leading suppliers in mainland China and Taiwan, with specifications for 72 best-selling export products.