While the rest of the world is reeling from all the bad news in the technology industry, Taiwan's information technology (IT) sector is confident of a strong second half.
Figures released on Wednesday from Taiwan's semi-government Market Intelligence Centre (MIC) point to a strong recovery in the overall IT industry.
The IT hardware sector, the backbone of the island's IT industry, is predicted to see sales grow 15.4 per cent this year to hit US$43.35 billion, according to MIC.
MIC predicts the sector will grow a further 8.8 per cent next year to US$53.59 billion.
The tight IT market and weak outlook in the US are playing into the hands of Taiwanese companies, according to MIC director Victor Tsan Wen-nan.
While the slow market and shrinking profits are forcing consolidation in the industry, such as the HP-Compaq merger, the trend is also forcing large brand-name vendors to outsource more design and production.
