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Commissions TECO to Assess Automotive Motor System

After more than a year of coordination and talks spearheaded by Taiwan-India Cooperation Council Chairman Theodore Huang, Indias low-price national car the Tata Nano made its Taiwan debut on December 10. Chairman Huang announced that TECO will be given one of the showcased Nano's for assessment of automotive machinery system R&D. Chairman Theodore Huang noted that when he first came into contact with the Nano a year ago, he was impressed by the economy of scale achieved by the car's low price and realized that Taiwan's auto industry could study and learn from this model. After extensive talks with Tata, the Nano was fi nally introduced to the public in Taiwan. Chairman Huang expressed hope that the Nano would help Taiwan to develop in the electric vehicle fi eld. He noted that TECO is Taiwan's leading provider of motors, and voiced confidence that the company would soon have considerable achievements to show from the commissioned R&D Taiwan-India Cooperation Council Chairman Theodore Huang (right) presents a Tata Nano to TECO for research. TECO Group on motor systems for electric vehicles. Chairman C.K. Liu is pictured on the left.

Tata Nano Debuts in Taiwan

Motor R&D Assessment

TECO Chairman C.K. Liu represented his company in accepting the Tata Nano. He noted that in recent years TECO has been actively advancing in the green energy industry, from energy-saving motors and consumer appliances to wind power. The company also is stepping into the electric vehicle field. Although the Tata Nano is not an electric vehicle, it provides an excellent example for the development of low-price automotive electrical machinery. The Nano also provides a perspective from which TECO can consider ways to develop a low-cost and high efficiency motor, such as the hub motor the company created for electric vehicle use. TECO will dedicate its energies to related evaluation and research to see if further cost reductions can be achieved.

VMAX Brings Internet Access to Taxis Company Aims to Install System on 10,000 Cabs by 2011
After a year of trial planning and promotion launched in October 2009,VMAX Telecom has installed its V-Cab taxi internet service in 1,000 taxis with a total monthly ridership of 610,000 passengers. VMAX President Teddy Huang said that his company is now offering the system in cooperation with M-Taxi Telecom and aims to expand it to 10,000 cabs in 2011. V-Cab is one of the M-Taiwan (Mobile Taiwan) application plans led by the Industrial Development Bureau of the Ministry of Economic Affairs. The service joins VMAX Telecom's WiMAX network and the ubiquitous mobility of taxis to provide riders with on-the-go information, entertainment and communication services through in-vehicle mobile internet devices (MIDs).

VMAX Telecom promotes its mobile WiMAX travel application service package. VMAX President Teddy Huang is pictured here.

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TECO Viewpoint

Chairman Huang Receives CNAIC Appreciation Plaque

TECO Group Chairman Theodore Huang recently completed an eight-year term as chairman of the Chinese National Association of Industry and Commerce (CNAIC). The association convened the third joint meeting of the 23rd board of directors and supervisors on November 23 and invited Minister of Economic Affairs Shih Yen- Minister of Economic Affairs Shih Yen-shiang (right) presents an shiang to present an appreciation plaque to Chairman Huang. appreciation plaque to CNAIC Minister Shih said that the appreciation plaque was presented in recognition of Honorary Chairman Theodore Honorary Chairman Huang's service as head of the CNAIC over the past eight years. He Huang. noted that during this time, Chairman Huang worked tirelessly to promote industrial development consistent with national economic policy. The memorial plaque was shaped like a lean horse, symbolizing the spirit of coursing forward and soaring high.

With Rare Earth Deal, TECO Seizes Wind Power Opportunities

At the start of 2010, TECO introduced a Three New strategy involving New Businesses, New Markets, and New Sales Strategies. At the companys third-quarter employee meeting, TECO Chairman C.K. Liu said that, this year, the company's various business sectors have all made gains in the areas of product development, market expansion, and business mergers. By founding a joint venture wind power company with TECH Wind Power (Jiangxi) Co., Ltd., TECO has secured a stable supply of rare earth raw materials needed for the production of permanent magnet motor, permanent magnet generators, and electric vehicle motors, improving TECO's competitive position. With the economic recovery and the signing of the cross-strait Economic Cooperation Framework Agreement, TECO will also continue to carry out its market prioritization strategy and develop cross-strait business opportunities.

2010 Review and Outlook

TECO President Sophia Chiu presented a talk on the status of TECOs operations at the third-quarter employee meeting, held on November 29, 2010. She noted that the companys strong performance and market outlook in 2010 helped to push up TECO's share price up by 30% for the year, far-outstripping the 1.7% gain for the market index overall and also besting most of the company's industry peers. She thanked Chairman C.K. Liu for leading the company in the right direction and all of the company employees for their hard work.

A Year of Growth in 2011

President Chiu further noted that forwardlooking new products and new markets are important factors in driving growth. 2011will be a year of growth for TECO. She therefore called on company colleagues to maintain the growth momentum and ambition and tap the infinite potential of overseas markets. She also urged TECO's talented people to drive the company's outward development and help TECO take wing.

Mos Burger Executive Vice President Shang-jen Huang Honored as Top-100 MVP Manager
Manager Today" magazine announced its "2010 Top-100 MVP Managers in Taiwan." Mos Burger Taiwan Executive Vice President Shang-jen Huang was picked as the most valuable manager in the "Environmental Protection and Green Energy" category in recognition of his "efforts to differentiate Mos Burger though green purchasing and for advancing the company brand to the number-two market position." Mos Burger is winning over consumers with its delicious menu offerings, which are made-to-order using organic ingredients. The company is the number-two fast food chain in Taiwan in terms of number of restaurants. It also is the third biggest fast food brand overall in Taiwan, and the only one to steadily expand its chain over the past five years. This achievement owes much to the company's green procurement strategy. Under Vice President Huang's lead, Mos Burger scoured production areas in Taiwan to implement its green procurement policy. The company keeps records of the production volume, planting methods, harvest dates and other detailed information for the ingredients it procures to ensure stable and consistently high-quality supply. Although this approach has increased the company's purchasing costs by about 10% over that of industry peers, it also has helped Mos to differentiate its brand and win over consumers to drive the company's growth.

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Universal Vision

Taian Technology (Wuxi) Holds Groundbreaking Ceremony for New Industrial Automation Control Plant Embracing the Market with a New Look
TECO Group member Taian Technology (Wuxi) held a groundbreaking ceremony for a new industrial automation control plant on October 13. TECO Group Chairman C.K. Liu and Taian Technology ( Wu x i ) D i r e c t o r S t e v e n Chiang attended the ceremony. Chairman C.K. Liu presents a speech Chairman Liu noted in a speech that Taian enjoyed sharp growth in 2010, adding that the new plant will provide a firm foundation for the company to develop further going forward. He

A perspective drawing of the new plant

congratulated all of the participants for their efforts and wished the project a smooth and timely completion. In 2010, Taiwan and mainland China signed the cross-strait Economic Cooperation Framework Agreement (ECFA). The agreement is expected to further intensify links between the markets on the two sides. The groundbreaking ceremony is just the first step in the construction of the new industrial automation control plant. The facility will serve as the TECO Group's flagship base for industrial automation control products in the mainland. In future, the group will invest more R&D resources and create an R&D team of nearly 200 people to develop business in China's domestic market.

17th TECO Award Announced

An award-presentation ceremony for the 17th TECO Award was held on November 6 at the CPC Building. The ceremony was joined by ROC Vice President Vincent Siew. Vice President Siew praised the TECO Technology Foundation for its diligence and the spirit of the TECO Award in combining technology and the humanities. TECO Group Chairman C.K. Liu said that the TECO Award initially focused on technology and science, but later added a humanities category. The reputation and credibility of the TECO Award have steadily grown due to the award's fair and professional review standards. TECO Group Chairman Theodore Huang stressed that in future, TECO Electric and Machinery would continue to support the foundation's development. This year's winners in the technology category were Wu Cheng-wen, Cheng Fang-tian, and Hong Shang-cheng. The humanities award in the field of "Social Services: Special Education" went to Lai Mei-chih.

TED Deepens Presence in the Indian Market

In order to explore business opportunities in emerging markets, TECO Electro Devices (TED) stepped up efforts in the second half of this year to develop the Indian market. In September, the company joined a promotion delegation formed by the Taiwan External Trade Development Council to showcase products at EMMA Expo India. The company received on-site orders at the event and later discussed cooperation opportunities with several Indian companies. During the two-and-a-half-day expo, TED displayed its DSH40, DST42, DST56, and DST282 stepper motors and high added-value medium to high inertia servo motors, the NEMA23 and NEMA34 brushless motor series, and brushless motor drivers. The fourbooth exhibit was one of the biggest at the show, putting TED among the Taiwan exhibitors attracting the most attention from visitors and the media. TED plans to extend its operations to India in the near-term as part of its global expansion strategy. The company plans to open an office or sale agency in India, as well as cultivate business with the local OEM and ODM markets and strengthen services to local customers.

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TECO Highlights

TECO in the News

Industrial Product & System Sector
TED Introduces High Performance DC Brushless Motor TECO Electro Devices (TED) expanded its product offering this year with additions to its Nema series of stepper motors, servo motor systems series, and other types of DC motors. The company also debuted a direct currrent brushless motor series that gives industrial users a new higher efficiency choice. In recent years, TED has been using its keen market sense to tap global emerging markets and broaden its market scope. (Nov. 15, Commercial Times) TECO Secures Edge with Rare Earth Deal T E C O f o r m e d a j o i n t ve n t u r e w i t h A-Tech Wind Power (Jiangxi) Co., Ltd., g iv i n g i t a n i n d u s t r y l e a d i n s e c u r i n g access to rare earth supplies needed for the manufacture of permanent magnet motors. With the deal, the company expects smooth shipments of its wind turbines and estimates revenue from initial deliveries to reach at least NT$5 billion.(Oct. 19, Commercial Times)

(2010.10~2010.11)
company posted a net income of NT$1.95 billion, or NT$1.08 per share. This is the company's best performance in nearly three years, ranking it first among the "Big Four" home appliance brands in Taiwan. (Nov. 21, Economic Daily News) TECO and Far Glory Group Invest in Nanjing Real Estate Wi t h t h e c r o s s - s t r a i t E c o n o m i c Cooperation Framework Agreement (ECFA) officially coming into effect on January 1 next year, Farglory and the TECO Group expect accelerated growth of the crossstrait production relocation and electronics industries. The trend is anticipated to drive demand for high-tech manufacturing plants and linked living facilities in the mainland. The two companies therefore have decided to jointly form the Nanjing Strait Investment and Development Company to develop industrial zones in Nanjing. Outside observers expect the venture to realize synergies from Farglory's expertise in developing industrial zones, digital residential communities, and other largescale real-estate projects and the expertise of Century Development Corporation, a venture between the TECO Group and Ministry of Economic Affairs venture that developed the successful Nangang Software Park Phase 3 development area in Taipei. (Oct. 13, Commercial Times)

introduce a 22-inch 3DTV and 46-inch 3D signboard display in the second quarter of next year. TECO will mainly supply fully-assembled products, while CSI will supply 3D sensor components t o ex p a n d i n t h e 3 D i n d u s t r y m a r ke t . (Oct. 15, Economic Daily News)

Telecommunications & Service Sector

TECOM Introduces Enterprise Phone Fee Savings Plan TECOM has set its sights on the huge mobile phone market with the opening of "shop-in-shops" at Taiwan's

leading discount chain Carrefour. The company also has teamed up with Far EasTone Telecom to hold a "Enterprise Switchboard Special Offer Seminar" to promote money-saving telecom service plans and mobile network applications for corporate users, seeing the segment as a new engine for revenue growth. (Oct. 15, Economic Daily News)

IT & Optronics Product Sector

Consumer Appliance & Service Sector

E&E Forms Cross-strait Electronics Recycling Venture E&E Recycling and China Recycling Development Corporation launched an NT$1 billion venture that will operate electronics recycling plants in Guangdong, Sichuan, and Heilongjiang to tap the mainland Chinese recycling market. E&E was jointly created by a consortium of 12 companies, including TECO, Sampo, Panasonic Taiwan, and Taiwan Hitachi. China Recycling Development Corporation is a subsidiary of the All China Federation of Supply and Marketing Cooperatives and the biggest recycler in China approved by the State Council. (Oct. 17, Economic Daily News) TECO and CSI Roll Out 3DTV and Signboard Displays T E C O a n d g r o u p a ffi l i a t e C r e a t ive Sensor Inc. (CSI) plan to jointly

CSI Increases CISM Shipments, Revenue Outlook Bright The strengthening Japanese yen is expected to drive steady growth in the color contact image sensor module (CISM) sector next year. Creative Sensor Inc. (CSI) expects shipments of CISM products to hit 40 million units next year, representing a global market share of 55%. The company has formed close times to the supply chains of U.S. and Japanese customers supported by its operation bases in mainland China. Next year, it will introduce regional sensor modules to tap supply chains for different types of consumer products as a new stream of revenue growth. (Nov. 15, Economic Daily News)

Investment & Holding Sector

TECO Scales New Heights TECO expects to begin seeing revenue and profit gains from efforts to develop its wind turbine business in recent years. In the first three quarters of the year, the