NEC procurement in Taiwan to reach USD 3 billion this year, plans to market SI solution

April 16, 2008

NEC, Japan's largest computer manufacturer, will purchase a total of USD 3 billion in components from Taiwanese manufacturers this year, and plans to introduce its systems integration (SI) solution to Taiwan, according to a report by the Economic Daily News.

At the top of NEC's procurement list were WiMAX components such as broadband and network peripherals, surpassing notebook computers for the first time ever as the top procurement item, said NEC Taiwan general manager Akira Kubota. NEC has also set a procurement goal of USD 3 billion for the new fiscal year, which starts in April, he said.

This year the company's revenues could grow by up to 30% over last year, up from NTD 5 billion, said Kibota.

NEC is Taiwan's second largest Japanese procurement partner, after Sony. It set up an R&D center on the island to handle several cooperative projects with local manufacturers such as Quanta and MSI. Projects such as these have driven NEC's procurement in Taiwan, says the EDN report.

The company also set up a WiMAX R&D Center, joining a growing WiMAX business cluster in Taiwan. NEC currently provides WiMAX base equipment to Tatung Telecom, and is looking to work with other companies, says Kibota.

Kibota said that with the new fiscal year, NEC Taiwan will place equal focus on selling hardware and introducing its SI solution to the Taiwanese market. The company's customer targets will be Taiwanese government agencies, financial institutions, the retail sector, IT industry, and the manufacturing sector; the company also plans to introduce a version of its SI solution for the tourism industry, specifically to European and US-run five-star hotels, he said.

NEC holds a market share of over 50% for the SI market in Japan, according to Kibota.

The Taiwanese food conglomerate UniPresident uses the NEC SI framework, said Kibota. NEC Taiwan also aims to extend the reach of its SI solution to logistics companies, department stores, retail outlets, and trading companies, he said.

In addition, NEC Taiwan has also been contracted to provide a fingerprint identification system for the Bureau of Labor Insurance pension system, and the Criminal Investigation Bureau under the Ministry of the Interior. This attests to the stability and approval of NEC's SI solution, said Kibota.

(Economic Daily News)

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