Taiwanese PC makers hang big hopes on small laptops

While the worldwide computer market is suffering through its worst sales in years, one bright spot is coming from the mini-laptops known as "netbooks", which appeal to the budget-conscious in tough times.

Several research groups have forecast that global demand for the thin, light machines could double this year - and the category is dominated by Taiwanese brands and Taiwanese contract manufacturers.

With the island's $2.5 billion in electronics exports accounting for one-fifth of Taiwan's overall exports in January, Taiwanese government planners hope netbooks can boost an economy that is struggling.

At 5%, unemployment is moderate by worldwide standards but at a five-year high in Taiwan. With exports registering two consecutive monthly drops of more than 40% year-over-year, economists are predicting a 3 to 6% contraction in the Taiwanese economy for 2009.

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