HSINCHU, Taiwan, Nov 5 (Reuters) - Taiwan personal computer
and motherboard makers say the end is in sight for supply chain
delays blamed on September's earthquake, but competition with
mobile phone makers for components showed no signs of easing.
Computer makers say the quake's impact on delivery of key
components such as core memory chipsets -- which allow a PC's
microprocessor brain to communicate with other parts of the
system -- is expected to ease by the end of November.
A major earthquake on September 21 killed more than 2,400
people and sidelined Taiwan's computer parts industry for
nearly two weeks with widespread blackouts and power rationing.
PRODUCTION COOLED JUST AS SALES HEATED UP
While virtually no manufacturers reported physical damage
to plants and equipment, the production halt came just as
Taiwan's prodigious electronics exporters were limbering up for
the fourth quarter -- always the hottest sales period.
"We have enough orders but don't have enough supplies to
produce," said Billy Ho, chairman of Mitac International Corp
<2315.TW>, which makes PCs and notebook computers for Compaq
<CPQ.N>, Hewlett-Packard <HWP.N> and Sun Microsystems <SUNW.O>.
The peak shortage period began in October and things were
returning to normal in November, Ho said during a tour of
Hsinchu science park, the heart of Taiwan's technology
industry.
"This is a bad situation," Ho said as he blamed the quake
for T$300 million (US$9 million) to T$400 million in lost
revenues.
Mitac's lament has reverberated in the United States. Dell
Computer <DELL.O>, Hewlett-Packard and others have warned that
high computer memory prices and parts shortages blamed on the
earthquake could hit fourth-quarter corporate results.
MEMORY, CHIPSETS, GRAPHICS HIT HARDEST
One internal report by a Taiwan computer firm released to
Reuters on condition of anonymity said the longest delays --
four to five weeks -- involved chipset makers. Taiwan supplies
20-30 percent of the world's motherboard chipsets.
Flash memory chips saw the biggest price hikes with a 40
percent post-quake surge, with supply and demand gaps of three
to four weeks seen being ironed out in early November.
"The memory shortage is not really that bad, but I think
the price rise has caused hoarding and speculation, which made
things worse," said Henry Lu, vice president of Micro-Star
International <2377.TW>, Taiwan's second-largest motherboard
maker.
Microstar saw higher prices and limited supplies for the
graphics chips that allow computers to support sophisticated
design applications and visually dazzling video-game effects.
Some 85 percent of all graphics chips are made in Taiwan.
MOBILE PHONE RAGE HARRIES PC MAKERS
While Mitac's Ho and Microstar's Lu both agreed the
shortages were tapering off, they also concurred that
competition with mobile phone manufacturers was here to stay --
and furious.
"Mobile phones are going crazy right now," Ho said. "Phone
makers are paying much higher prices" for memory than PC
makers.
Lu saw a similar situation in passive components such as
resistors.
"I've heard that phone makers pay two to four times more
than we do for resistors," he said. |
