November 1, 2006
Samsung Electronics' procurement in Taiwan will reach
USD 3.2 billion this year, representing a nearly 60% increase over last year, said Jiang Bing-zhu, head of Samsung procurement.
Over the past six years, Samsung's procurement amount in Taiwan has grown nearly 32-fold over the past six years, and Taiwan companies are now considered Samsung's best suppliers, said Jiang.
Jiang was in Taiwan earlier this month to host Samsung's "First Annual Taiwan Procurement Negotiation Meeting", at which he heavily emphasized the opportunities for partnership with Taiwan chain suppliers.
This is the first time that Samsung has held such a large-scale procurement meeting in Taiwan, said Hong Seok-min, director of Samsung Electronics' Taiwan branch.
Attending the meeting were 50 representatives from 14 departments of Samsung Electronics, display division Samsung SDI, Samsung Electro-Mechanics, and Techwin.
In 2000, Samsung purchased
USD 100 million in components from Taiwan, and the large increase in procurement over the past years attests to Taiwan's rising competitiveness in electronics and
IT products, said Hong.
The Taiwanese companies represented at the meeting included Advanced Optoelectronic Technology, Mstar Semiconductor, and Tripod Technology. 150 companies in total attended.
Samsung's procurement plans now makes Korea the second largest purchaser in Taiwan, after Japan. Last year, the company purchased
USD 2 billion in parts and originally announced a spending target of
USD 2.5 billion for this year, which had already been reached by Sept. Most of Samsung's expanded procurement budget is devoted to LCD panels.
Quanta, Chi Mei Optoelectronics, Hannstar and Chunghwa Picture Tubes currently serve as LCD suppliers for Samsung. LCD panels comprise between 35% to 40% of Samsung's procurement in Taiwan, which will include IC design, chip OEM, and active and passive components under future procurement deals.
(Economic Daily News)
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