Apr. 06, 2001

According to a report in the Chinese-language Commercial Times, Compal Electronics Co., located in the Taipei suburb of Neihu, signed an agreement with representatives from NEC corporation Wednesday to supply the Japanese firm with roughly one million notebook computers, significantly boosting 2001 turnover and profit.

Thinning profit margins and the resulting pressure of economics of scalefor survival have left Taiwan's IT industry with just half a dozen of notebook manufacturers dominating the international OEM market.

Compal is one of the world's leading manufacturers of this field and well known for the high quality of its computer and monitor products. The company has been steadily expanding into the communication field. Compal produces notebook computers, monitors another information products for a variety of major brand name buyers around the world in two locations: is Ping-chen factory in Taiwan and Kwunshan factory in China.

Compaq and NEC are among the major buyers of Compal computers and CRT and LCD monitors. According to a company spokesman, the firm also received substantial orders for fax machines from a number of Japanese buyers and calls for printers from Hewlett Packard.

Compaq and NEC are among the major buyers of Compal computers and CRT and LCD monitors. According to a company spokesman, the firm also received substantial orders for fax machines from a number of Japanese buyers and calls for printers from Hewlett Packard.

The firm will work this year with HP to produce hand-held computer systems.
According to local media, Compal expects to produce between 350,000 and 400,000 handheld units this year. Cellular phones could reach a total of one million pieces, the reports say. Compal has also put much emphasis on developing the so-called 2.5 generation wireless Internet mobile phone technology in recent years.

Notebook computer sales momentarily create 70 to 80% of Compal's business. LCD monitors, slowly replacing conventional CRT models, could increase 20 to 30%.