Quanta to Build China Notebook Computer Operation
<<Quanta also plans to produce up to 5 million mobile phone handsets next year after shipping 500,000 units in the fourth quarter this year. >>
--From AOL. Anyone have any information about their handsets?-- Cooters
Taipei, Oct. 26 (Bloomberg) -- Quanta Computer Inc., Taiwan's largest notebook computer maker, said it plans to build a notebook computer components plant in China, making it the island's last publicly traded notebook maker to start operations on the mainland.
Quanta will initially invest $26 million in a factory structure and some equipment to make notebook computer parts and produce subassemblies for final assembly in Taiwan.
``We are the last to invest in China, but it's an inevitable trend for Taiwanese notebook makers to seek cheaper labor in the mainland,'' said company spokesman Tim Li. ``It would be unfair to shareholders or clients not to follow.''
The Taiwanese government limits local companies' technology investments in China, fearing an exodus of firms pursuing lower production costs and increased unemployment at home. Taiwan reported a record 304,000 workers, or 3.1 percent of the total labor force, out of work in September.
While local companies are not allowed to make chips or finished notebook computers in China, Quanta executives said their plan will meet Taiwan's restrictions.
``Our investment complies with Taiwan government regulations on mainland investment, because those are only semi-finished products,'' Li said.
China has attracted investments from nearly all of Taiwan's notebook makers, including Acer Inc., Asustek Computer Inc. and Compal Electronics Inc., which make components on the mainland while keeping Taiwan as their main operational and design base.
The Taiwanese companies are poised to convert their existing plants into notebook computer operations in the expectation that Taiwan will relax its investment restrictions.
Quanta said that it is on target to produce nearly three million notebook computers this year. The company expects to make 4.5 million notebooks in 2001, compared with 2.8 million units this year.
Quanta also plans to produce up to 5 million mobile phone handsets next year after shipping 500,000 units in the fourth quarter this year. The company expects to make NT$90 billion ($2.9 billion) in sales this year and NT$130 billion in 2001.
Quanta has fallen 35 percent this year, compared with a 30 percent decline in the island's key TWSE Index. Its shares today fell by NT$4, or 3.4 percent, to NT$114.5.
Oct/26/2000 6:30 ET |
