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Manufacturers Heading to China?Thursday, January 13, 2005Off the eastern side of Asia lies Taiwan - a technologically slick island peopled with competitive software companies and engineers. Taipei, at its northernmost tip, has even been referred to as China's "Silicon Valley," promising global high-tech miracles. At least that was the story back in 2001, the year that defined whether Taiwan could make good on those promises -- or not. Now, however, three top Taiwan-based Notebook PC manufacturers are busy packing their sturdy, state-of-the-art bags and, unlike Elvis, are leaving not just their buildings, but the entire island. Yes, the mainland beckons, and Quanta Computer Inc., Inventec Corp., and Compal Electronics, Inc., are heeding its call. Nothing personal, Taiwan -- it's all about the money, and these top firms want to see it. Faster. And in greater numbers. They've caught the whiff of faster-flowing cash, and realized that the buck stops in Taipei. Taiwan's economy is still recovering from that 2001 recession, and it hasn't even come close to bouncing back to the boom of economic growth it enjoyed in the late 1990s. Remember the glory days of Toshiba, IBM, and Compaq, who moved their notebook production and design centers to Taiwan? At the time, Taipei was the place to be to cut costs and boost profit margins. Inventec, Quanta, and Compal produce the majority of notebooks worldwide, so crossing to the mainland is a very good move for them right now. And with notebook production ballooning like never before and giving no signal of losing air anytime soon, this is basically a do-it-or-die mission. At least some of the liquidation left behind in Taiwan will be in a semi-solid form; the island's ECONOMIC NEWS reported that the firms will either turn their factories into facilities devoted to research and development, or they'll just shut them down completely. So far, Compal is the only firm that plans to keep its already-standing plant alive, Quantec is building a new facility for the same intent. But hold your applause. Inventec will completely close down, definitely not a good portent for talented workers and the economic outlook of the already-shaky state. In the meantime, look to China's mainland to mount a challenge for all your notebook PC needs; with Quanta set to deliver 16 million laptops, and Compal to ship at least 10 million, America's shelves should be well-stocked. Related article: - Sales of Notebooks Surge in China By Catherine Van Herrin |
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