- Taiwanese optical component industry shipment value reached US$140.9 million in 2003, 24% annual growth from 2002. Active component value grew 39% to US$78.6 million, while passive component shipment value rose 9% to US$62.3 million. Compared to the dramatic loss seen over the course of 2002, both active and passive components exhibited a sharp reversal in 2003.
Boding well for active components, cuts in monthly rates for FTTH (Fiber-to-the-Home) service by NTT East, NTT West, and Usen brought about a considerable 670,000 increase in FTTH subscribers in Japan. Facing heavier demand, Fujitsu and NEC outsourced production of modules to Taiwanese makers, helping to turn in a 212% annual increase in bi-directional transceiver shipment volume, which reached 1.5 million units, as well as robust value growth. Additionally, LAN (Local Area Network) equipment makers accelerated the adoption of Gigabit Ethernet in switches, resulting in shipment volume gains for GBIC (Gigabit Ethernet Interface Converter) modules.
As for passive components, global backbone network demand remained weak in 2003, resulting in plateaus or declines in shipment volume for components such as DWDM (Dense Wavelength Division Multiplexing) modules and isolators. However, steady growth in FTTH subscribers in Japan and broadband subscribers in Europe and Asia Pacific drove volume growth for CWDM (Coarse Waveguide Division Multiplexing) modules, connectors, and patchcords, with CWDM modules and small-sized connectors seeing the highest growth. However, as prices slid, shipment value saw a slight rise.
In 2004, increased capital expenditures by operators worldwide, sustained FTTH subscriber growth in Japan, and more rapid replacement of Fast Ethernet by Gigabit Ethernet are all expected to boost outsourcing to Taiwanese optical component makers. However, facing specification changes in Japanese FTTH products and price competition from Chinese suppliers, Taiwanese optical component shipment value in 2004 is expected to be US$166.1 million.