Fujitsu Increasing Taiwan Procurement by 50 Billion Yen

September 22, 2006

Fujitsu Greater China Region's top General Manager Men Xie-fang said that Fujitsu would be increasing procurement in IT and electronics components from Taiwan manufacturers by up to 50 billion Yen, a 5 billion Yen increase over last year.

Fujitsu formed its Greater China IPO earlier this year to handle all IT product procurement in the Asia region. This strategic adjustment will benefit Taiwan companies greatly, particularly Quanta, Wistron, Inventec, Mitac, Gigabyte, AUO, and Chi Mei Optolectronics.

Fujitsu is the third largest Japanese buyer of Taiwan components, after Sony and NEC. These companies mainly purchase components for PCs, notebook computers, networks, servers, POS systems, LCD flat panels, cell phones, and semiconductor parts.

Men said that Fujitsu's procurement in Taiwan and other areas is concentrated in components, which are finished and assembled in Japan. Although the company markets its computers as "Made in Japan", Fujitsu purchases a majority of its parts in Taiwan, and ships them to Japan for final assembly and quality inspections.

The new procurement announcement will cement Fujitsu's cooperative relationship with Taiwan companies, Men said.

Fujitsu is the world's second largest Systems Integration (SI) company, and its business scope is second only to IBM, noted Men, adding that the company is a prominent player in the global market when it comes to networks, hard drives, POS systems, and mainframes.

Taiwan Fujitsu General manager Liu Rong-zhi said that Fujitsu's corporate headquarters considers its recently formed Taiwan's R&D center a prime opportunity to develop applications such as RFID technology, medical care, and logistics flow. Together with Taiwan companies, it could develop further opportunities in the Greater China market, said Liu.

(Economic Daily News)

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