KOREA'S TRIGEM EYES EMERGING AS WORLD'S LARGEST ODM SUPPLIER
SEOUL, May 14, 2002 (AsiaPulse via COMTEX) -- The merger of Hewlett-Packard Co
(HP) and Compaq Computer Corp presents a golden opportunity for Korea's Trigem
Computer Inc to become the world's largest ODM (original design manufacturing)
supplier.
At present, Trigem, which began to supply PCs to HP in 1999, has been close
behind Taiwan's Tatung Co. in the world ODM market. The former makes up about 40
per cent of HP's current ODM production, while the latter takes up some 45 per
cent.
However, Trigem is expected to overtake Tatung in terms of export volume as HP
will handle the consumer PC business after the merger with Compaq.
The Korean computer firm is moving to meet the potential increase in ODM supply
to HP by building a second production plant in Juarez, Mexico, with an annual
capacity of 1.8 million units, raising its ODM production this year to double
the figures of last year.
Trigem, which has exported an average 130,000 units per month to HP, plans to
expand volume to more than 300,000 units, which includes its supplies to Compaq,
from September.
It will also raise its total production capacity to 400,000 units by the end of
this year.
In particular, Trigem hopes its exports on an ODM basis will reach 3.5 million
units this year, as Tatung reportedly failed to secure PC orders once linked to
Compaq.
However, some industry sources warned that with the PC industry showing a 3-4
year business cycle, it will be dangerous for Trigem which has no brand power in
the U.S. to depend heavily on HP.
Regarding this, however, a company official said, "Increasing capacity in Mexico
proves that a long-term partnership has been formed between Trigem and HP."
(YONHAP)
(C) 2002 Asia Pulse Pte Ltd |
