Along with the overwhelming growth of the Internet and the rapidly increasing demand for wide-band equipment, TAICOM has just undergone its third transformation to cope with the rapidly changing market. In late January, both its personnel and the organic structure were reshuffled. According to Mr. CHEN Chia-yuan, the new general manager at TAICOM, the new management is ready to be engaged in the Internet market, aiming to become a leading manufacturer of the Internet catching equipment.

First Transformation: From System Agent to Local Transmission Equipment Maker

Founded in 1983 as an agent, TAICOM began promoting international system products in the local market while integrating different systems, which turned out to be the beginning of its involvement in the telecommunications business. Being aware that there was not that many Modem makers in the local market, TAICOM took the opportunity and established its own R & D division to make industrial Modems, making itself a key supplier of digital telecommunications products to Chunghwa Telecom Co., Ltd. in the local market. At the same time, it was dedicated to launch Pairgains and the 128K lines (IDSL).

Second Transformation: Introduction of Globalization

Back in 1992, 1993 when Internet was first introduced, TAICOM began to try the international market by introducing its products in the overseas market. Besides industrial Modems, it had PC Modems. Only because of the limited market capacity in Taiwan, TAICOM decided to march into the global market. Based on its data&voice technology, TAICOM was engaged into ISDN. Its globalization strategy allowed TAICOM to be in touch with Europe, the U.S. and Japan and eventually it was awarded ISDN ODM orders from OMRON, the No. 3 telecommunications maker in Japan, confirming TAICOM's ODM technology.

Third Transformation: From Maker of Transmission Equipment to Maker of Internet Catching Equipment

Urged by the liberalized telecommunications industry, an integrated telecommunications with the Internet has become the imminent trend. Supported by the experiences it has accumulated, TAICOM is capable of the task. To cope with the development of the Internet communication, TAICOM has established its own Internet Division led by a new management team. Mr. TSENG, Huang-sheng, the former Chairman and General Manager retains his chairmanship, while Mr. CHEN, Chia-yuan, the Executive Vice President takes the post of General Manager, leaving his post to Mr. HONG, Hsiao-hsing, current Vice President. The reshuffle aims to have the team of well-divided labor perform more efficiently.

Mr. CHEN, Chia-yuan says, in this new trend of Internet Communications Revolution, TAICOM will opt for multi-integration of telecommunications. Currently its products are PSTN Router, ADSL Router, WAN Router, VoIP integrated in Router, and all would be available for the market in the third season this year. Having dominated the key technology of router for remarkable benefits. Mr. CHEN, Chia-yuan said in an interview that TAICOM would keep on its R & D in the integration of technologies as it has been doing and, besides delivering transmission equipment, it will be launching Internet Access as well. As by activity, the company has investment in NOI Company of the U.S., which is working with the Internet R & D that TAICOM established last year, for the development of the Router series products. At this time, the company has orders for 20,000 sets. The overall order for this year would go up to 80,000 sets. With the key technology for Router in the hands of TAICOM, which enjoys high gross profit, TAICOM is sure of its profit on the 80,000 sets of Routers.

Besides, in the application of IA products, TAICOM will be a provider of access of IA into the Internet interface and the company plans to work with the IA industry under a strategy league. Mr. CHEN Chia-yuan believes this would be another chance for TAICOM, which would enjoy an estimated revenue of $2,500,000,000 this year to become a registered company next year.