To: Lizzie Tudor who wrote (11848 ) 4/18/2006 3:24:46 PM From: The Duke of URLĀ© Respond to of 19790 Wistron Expands to Meet Microsoft Demand China Plant Begins Renovations to Meet Xbox-Console Orders By CHIU PILING April 18, 2006 1:08 p.m. TAIPEI, Taiwan -- Wistron Corp., one of Taiwan's top electronics contract manufacturers, said it is expanding production capacity for its Xbox game consoles and other products to meet increased demand, even as it increases its focus on new, higher-margin items. In a recent interview, Chairman Simon Lining said Wistron aims to boost its production capacity for Xbox 360 game consoles, laptop computers and other products including servers to 30 million units by mid-2007. "We are now expanding the manufacturing base for the Xbox" in the southern Chinese city of Zhongshan, Mr. Lin said. He added that Wistron hopes to reach a capacity of one million units per month by year end "to fully support our customer [Microsoft Corp.]" Microsoft has increased its orders for Xbox 360 consoles because it hopes to win customers from rival Sony Computer Entertainment Inc., a unit of Sony Corp., after Sony delayed the launch of its PlayStation 3, as originally scheduled in the first quarter. Mr. Lin declined to say what Wistron's production capacity for the Xbox was last year, but some analysts estimate that the company's planned capacity of one million units per month would be triple that of last year. Wistron is also boosting production of its laptops because of increased demand, Mr. Lin said. "We are revved up to double the [production] volume" at the company's Kunshan factory in central China, he said. The company primarily makes personal computers for branded vendors, including Dell Inc. and Hewlett-Packard Co.