TAIPEI, Taiwan — Etched into the back of every iPhone are the words “Designed by Apple in California. Assembled in China.” Apple might as well have added “Made in Taiwan.”

With little fanfare, Taiwan companies are playing a big role not only in the production of Apple’s latest device but in a wide array of other communications equipment, including the broadband modems in homes across the United States and the next generation of high-speed wireless gear.

Apple does not discuss which vendors it uses, but news reports in Taiwan said that Hon Hai and Quanta received orders to produce millions of iPhone handsets, reports that those companies declined to confirm. Other manufacturers there were almost certainly involved because they provide components used in advanced phones, industry analysts said.

Taiwan companies also have a hand in making iPods and iMacs, they said, as well as game machines for Sony and Microsoft.

Taiwan’s rise as a communications workhorse is part of a decade-long transformation under way on this island. Already the world’s biggest producers of computer components, Taiwan companies like Compal Electronics, in addition to Hon Hai and Quanta, have used their expertise to branch out into new markets that use many of the same products.

By harnessing the ability to cut costs, churn out products quickly and work flexibly with customers, the Taiwan companies have become top makers of cellphones, smartphones, broadband modems, wireless routers, global positioning devices, networking equipment and other gear. They, like companies elsewhere, have also made deep inroads into China, where many of their factories are.
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Taiwan’s evolution from computer-making giant to telecommunications Goliath has gone largely unnoticed in the United States because companies here make most of their money as made-to-order manufacturers, not sellers of their own brand products. But Taiwan’s industrial makeover has helped its companies remain competitive in a world increasingly dominated by low-cost Chinese assemblers and by Japanese and South Korean companies with strong footholds in high-end components like flash memory chips.

The strategy of repackaging — finding new uses for computer components — has paid dividends. Companies on the island have captured 87 percent of the global market for wireless modems, 84 percent of the D.S.L. modem market and 70 percent of the market for personal digital assistants.

In the competitive cellphone business, Taiwan companies made 12.4 percent of the world’s handsets last year, up from 9.8 percent in 2005, according to the Institute for Information Industry, a government-affiliated research center. That share is expected to grow as brand-name companies like Sony Ericsson outsource more of their production to companies here.
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“The iPhone is a great example of where Taiwan is still strong: reliable sourcing, leading technology and complex integration,” said Allen J. Delattre, chief of the electronics and high-technology practice at the consulting firm Accenture. “Does the average person who buys an iPhone know it’s from Taiwan? Maybe. Do they care? Probably not. But if you look at the companies in Taiwan, they are behind the scenes, and that’s a good place to be because that’s where the value is.”