Kirk Yang, Analyst, Managing Director and Head of Asia ex-Japan Tech Hardware Research at Barclays Capital, stated that due to low technical level and overlapping, five Taiwanese component product lines are in worrying situation such as electroacoustic component, printed circuit board, battery, case component and assembly.

“Chinese eletric component firms have transformed from what box or knockoff guerrilla into regular army that penetrated Apple supply chain.” commented by Kirk Yang.

Echoing with what Kirk Yang has warned, there are seven electroacoustic component providers, as well as six bettery and printed circuit board developers, and seven from glass and connector industry. As a result, 20 Chinese component firms have become Apply supply chain in 2015. In other words, some of Taiwanese component firms have been replaced. For example, Wanshih Electronic Co.

Meanwhile, Chinese component firms surly will not only aim at those low technical level market but also eye on semiconductor and panel industry.

Tu Tze-chen, General Director at Center of Knowledge-based Economy and Competitiveness of ITRI suggested that Taiwan had better face the emerging red supply chain and deal with the situation as early as possible.