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IT/ICT makes inroads into healthcareJan 22, 2024

Taiwan's IT/ICT industry is increasingly expanding its footprint in the biomedical industry. Qisda has built a fleet through mergers and acquisitions, acquiring stakes in nine companies, while Acer, Pegatron and Foxconn have also made their investments through successive IPOs of their subsidiaries.

Quanta and Wistron have also invested in biotech subsidiaries in AI robotics, medical device OEM, healthcare and other fields, while Compal has Shennona, BeneCheck, Aco Healthcare and Raypal Biomedical, which are respectively involved in medical and sports-related products, blood glucose monitors, handheld ultrasound devices and cell-based products and contract services.

Qisda has announced the listing of BenQ Medical Centre in Hong Kong. Excluding the parent company's medical display and healthcare businesses, Qisda has invested in nine biotech companies, including BenQ Medical Technology, BenQ Materials, Crystalvue, Norbel Baby, TCI, Concord Medical, Diva Laboratories, Visco Vision and Lagis Enterprise, with a market capitalisation of more than US$40 billion; BenQ Medical Technology, BenQ Materials, Crystalvue, Norbel Baby, TCI, Concord Medical, Diva Laboratories, Visco Vision and Lagis Enterprise, with a market capitalisation of more than US$40 billion. Qisda's investments range from operating theatre equipment, contact lenses and skin care, ophthalmic medical devices, pharmacy chains, genetic testing and medical displays, in addition to the BenQ Medical Center in China, indicating that the group is poised to take off in its healthcare business.

With AI in smart healthcare in mind, Acer has entered the market with Acer Medical. Asus, on the other hand, is seizing the opportunity through Onyx Healthcare and InnoCare Optoelectronics.

Of all the products that the IT/ICT industry has ventured into, contact lenses are the real export driver.

Companies such as St Shine Optical have benefited from the sale of their products and have generated a lot of interest in contact lens manufacturing.

There are 13 contact lens companies in Taiwan, more than half of which have IT/ICT stakeholders, such as Pegavision, which is owned by Pegatron and Kinsus Interconnect Technology; Vizionfocus, owned by CWE; Largan Precision and Visco Vision, owned by BenQ. Pegavision has outperformed St Shine Optical in terms of profitability since 2023. These are successful cases of the IT/ICT industry's experience in OEM business and international marketing.

One sector that cannot be excluded is pharmaceuticals, with Sonix Technology investing NT$10 billion in Polaris, a single largest investment, and NT$6 billion in Acepodia. Foxconn's GTM Investment participated in the private offering of EirGenix at $91.5 per share, acquiring a stake of about 18.56% and becoming the single largest shareholder.