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NEC to open notebook R&D center

August 21, 2004

Japan's NEC is establishing an innovation and R&D center in Taiwan. NEC expects to invest NTD 2 billion in this center over the next three years. Following Sony, this is the second major Japanese information technology company to set up and R&D center here. IBM has also recently established its own R&D center in Taiwan.

The center, established in coordination with the Ministry of Economic Affairs, will work with its Taiwanese partners to design and test-produce notebook computers and other products to be manufactured in China. It will also develop products such as personal computers and network servers. NEC has signed an agreement with the MOEA under which it will transfer its latest production and design technology to this R&D center.

NEC, Japan's computer leader, commissions Taiwanese companies to produce approximately half of its notebook computers. It says that orders for all products developed at the Taiwan R&D center will be given to its local contract manufacturers. In the fiscal year ending March 2005, NEC expects to procure up to USD 3 billion worth of products from its Taiwanese partners, including Quanta Computer and First International Computer, a 25% increase over the previous year. The MOEA reports that NEC procured NTD 29.3 billion worth of products from Taiwan last year, making it Taiwan's seventh-largest foreign procurer.

Twenty-two R&D centers have been established in Taiwan by overseas companies since 2002. These companies include such major global enterprises as Hewlett-Packard, Sony, Dell, Microsoft, IBM, Ericsson, Intel and Dupont.

(United Daily News, CNN Money)

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