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To: rudedog who wrote (73626)	12/14/1999 7:36:00 AM
From: hlpinout	Respond to of 97611

Rudedog, Thanks for crossing the T's and dotting the I's. -- Dell to Reduce Contract Manufacturing, Raise Own Production December 14, 1999 (TAIPEI) -- Dell Computer Corp. plans to gradually reduce its manufacturing contracts with Taiwanese notebook computer makers, reversing a trend in which most large international players are increasing their outsourcing orders. Dell's notebook orders are expected to grow just 20 percent in 2000, down from an average of 50 percent over the past two years. Quanta Computer Inc. and Compal Electronics Inc., Dell's two leading Taiwan contractors, are expected to feel the brunt of the cut back. Dell purchased an estimated US$2.0 billion from Taiwan in 1999. The move was the result of Dell's latest strategy to raise its ratio of self-production. The company has added new production lines at its plant in Austin, Tex.,which manufactures notebooks for both corporate and personal use. The company's self-production ratio settled at 30 percent in November, and is estimated at an average of 10 percent for the full year. Self-production is expected to rise to 40 percent in 2000. Dell orders used to account for 40 percent of total shipments of both Quanta and Compal. In 1997 and 1998, Dell awarded 100 percent of its notebook orders to these two firms. Both companies, however, remain optimistic. A Quanta spokesman said Dell's move will have little impact on his company, as it has received new orders from Apple Computer Inc. Compal recently was awarded orders from Japan's Toshiba Ltd., and said that Toshiba could replace Dell as its leading customer. (Commercial Times, Taiwan)