Rise of E-Book Readers Bodes Well for Taiwan Firms

The rising popularity of electronic book readers such as Amazon.com Inc.’s (AMZN) Kindle bodes well for Taiwanese electronics companies that make the key components and are investing to grab an early lead in the market.

Taiwan’s long history in manufacturing consumer electronics, its aggressive low-cost strategy and closer ties with China gives the island’s companies an advantage over Japanese and South Korean peers, analysts say.

Liquid-crystal-display makers AU Optronics Corp. (AUO) and Chi Mei Optoelectronics Corp. and e-paper maker Prime View International Co. are hoping that the shift to digital books will help boost their revenue in the long term and help them diversify into other segments.

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