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NEC to increase IT procurements in Taiwan

November 10, 2004

Minister of Economic Affairs Ho Mei-Yueh welcomed NEC Corp. president Akinobu Kanasugi to Taiwan at a luncheon on October 11 where, to the great interest of Taiwan's biggest information technology players, Mr. Akinobu announced NEC's latest procurement plans. The Ministry of Economic Affairs says NEC will make procurements of NTD 120 billion in Taiwanese products this year, 20% than the NTD 90 billion in 2003.

NEC is Japan's largest computer and telecom products company and procures a wide variety of high-tech items in Taiwan. These range from parts and components to finished products. Notebook computers, personal computers, telecom products, servers and semiconductors are the primary products sought by NEC in Taiwan. Almost all of NEC's notebook computers are manufactured by Taiwanese companies.

NEC has established a joint R&D center for innovative products in Taiwan. This is center is the Japanese company's primary platform for expanding its procurements in Taiwan. NEC intends to invest NTD 2 billion in this center over the next three years.

Quanta Computers is NEC's largest partner in Taiwan, and has seen NEC's orders for its notebooks steadily increase over the years. Their procurement relationship works both ways as Quanta also makes procurements of machinery and equipment from NEC.

Quanta expects NEC to place orders for 60,000-70,000 or 70,000-80,000 notebooks computers with it this year, and is hoping for procurement orders from NEC in excess of 100,000 notebooks in 2005.

(United Daily News)

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