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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: StanX Long who wrote (56254)	11/26/2001 3:57:52 AM
From: StanX Long	Read Replies (1) \| Respond to of 70976

11/26 01:42 Taiwan Notebook, Cellular Makers to Boost China Plans (Update1) By Iain Pocock quote.bloomberg.com Taipei, Nov. 26 (Bloomberg) -- Acer Communications & Multimedia Inc., Quanta Computer Inc. and other Taiwanese makers of notebook computers and mobile phones plan to boost investment in China to cut costs and tap the mainland's growing economy. Acer Communications may expand production in China rather than in Taiwan, if orders at Taiwan's biggest mobile-phone maker rise next year, Alex Liu, a financial controller at Acer, said in an interview. The company plans to make about 6.5 million handsets in Taiwan this year. Taiwan last week eased investment rules, allowing companies in 122 industries, including notebook computer and mobile phone makers, to start manufacturing in China from next year. The companies, some of which have built plants in China in anticipation of a relaxation, will be able to pare labor costs by about a 10th and tap into a market of 1.3 billion customers as demand from the U.S., Europe and Japan wanes. ``Many companies have already started production in China,'' said Katherine Chen, who manages NT$800 million ($23 million) in stocks at International Investment Trust Co. ``Any relaxation of restrictions is positive, with the effect being rising investment and expansion on the mainland.'' China overtook the U.S. in July to become the biggest cellular phone market, while sales in the rest of the world dropped. Its $10 billion PC market is growing even as global sales shrink. China's economy expanded 7 percent in the third quarter from a year earlier, while Taiwan's shrank 4.2 percent. Hon Hai Precision Industry Co., Giant Manufacturing Co. and other Taiwan companies unhindered by investment restrictions already base most of their production in China to par costs and expand.