China's output of information technology products surpassed that of Taiwan this year for the first time, partly thanks to Taiwan makers' shifting of production across the Taiwan Strait, an industry watchdog said Tuesday.

Taiwan domestically produced IT hardware worth $23.08 billion in 2000, up 9.8 percent year-on-year, the Market Intelligence Center (MIC) at the Institute for Information Industry said in a yearend report.

However, with China posting a breathtaking 38.4 percent annual growth rate in the sector, putting out IT goods worth $25.54 billion this year, it stole Taiwan's rank to become the world's third-largest IT maker.

The United States and Japan retain their positions as the world's two leading IT producers, churning out hardware worth $88.49 billion and $45.47 billion, respectively.