Taiwan IT hinge players to enter China medical market

Taiwan IT hinge players to enter China medical market

Aaron Lee, Taipei; Joseph Tsai, DIGITIMES [Monday 20 February 2012]

Taiwan-based IT hinge maker Syncmold is set to cooperate with China-based players to enter into China's medical cart market as the China government is pushing the 125 plan to help transform the country's industries; meanwhile, benefiting from the 125 plan, notebook hinge maker Shin Zu Shing's (SZS') newly developed needle business may also have a chance to enter into China's medical market, the companies noted.

Since China's 125 plan is pushing the reformation of the health care industry and is set to establish 2,000 new hospitals nationwide, medical equipment demand should help Taiwan-based hinge players to achieve shipment growth.

Syncmold pointed out that a hospital in China on average has 800 beds and every 20 beds will require a medical cart; therefore, total demand for medical carts is expected to reach over 8,000 units. The company will start shipping medical carts in the second half with ASPs around NT$40,000-60,000 (US$1,354-2,031.)

As for all-in-one PC hinges, Syncmold is mainly supplying mid-range and high-end all-in-one PC models currently with high-end hinges priced at around US$10-20, higher than standard hinge's US$3-6.

Syncmold's consolidated revenues in 2011 were NT$8.4 billion with 80% coming from its monitor business, while LCD TV business accounted for 15% and all-in-one PCs 5%. However, the company's all-in-one PC hinge shipments will have a chance to rise to two million units, from one million units in 2011.