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NEC Taiwan seeking to acquire Taiwanese systems integration company

January 14, 2005

NEC Taiwan announced in mid-December that it is searching for a Taiwanese systems integration company to acquire. This move is being made in coordination with NEC headquarters in Japan, which recently acquired a consulting company as part of its decision to focus on strengthening its position as a solutions provider.

On a recent visit to Taiwan, NEC executives noted that NEC Corp. has placed procurement orders of USD 3 billion in Taiwan this year. They said total NEC procurements in Taiwan will climb to NTD 120 billion in 2005. NEC in Japan has set up independent companies for its personal computer and projector divisions, so these new companies will be making their own procurements in Taiwan. NEC and IBM may share similar motivations. IBM, stressing its strategy of focusing on services, has famously sold its personal computer division to Levono in China.

Nearly all of NEC's notebook computers are currently manufactured by Taiwan's Quanta Corp. and First International Computer Inc.

NEC Taiwan is already working on a number of systems integration projects in Taiwan, including a point-of-sale system for President Chain Store Corp. and the Criminal Investigation Bureau's fingerprint identification system. NEC Taiwan expects its systems integration business to grow by at last ten percent in 2005.

NEC is also actively developing solutions for the integration of computers and wireless telecommunications. These solutions are being developed under its concept of Uni-verge.

NEC Taiwan's R&D center, established earlier this year, is already nearing completion of projects focused on personal computer security chips and design work for high-density mother boards, and expects to release its results soon.

(United Daily News)

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