Ahead of government plans to announce new China investment measures for Taiwan's high-tech community, Acer Group Chairman Stan Shih (
"It's unreasonable to expect companies to go against the world trend and give up opportunities for profit on the mainland," Shih said in an article written for the financial Web site Asiawise.com. "That's especially true for companies that want to build global brands. Today's unrealistic rules have led to evasion and obfuscation."
Shih said rules are needed to help the nation's manufacturers best take advantage of China's market and labor resources and turn Taiwan into a "knowledge-based" economy.
In addition, Shih said that Taiwan "has a bright future in areas such as design, marketing and services. It has no future in low-end, labor-intensive manufacturing, and authorities should do nothing to deter companies from making such investments in China."
The statements follow closely a local news report yesterday stating Acer plans to begin the production of barebones notebooks -- minus the central processor -- at a Shanghai facility in February, after the government announces its new China policies.
Taiwanese firms are currently forbidden to manufacture notebook computers in China.
Acer Computer climbed NT$1.30 yesterday, or limit-up, to NT$20.40 on the news.
Industry players expect the new government policies to be announced by the end of January or early February, however, and all the nation's top notebook makers -- including Acer, Compal Electronics (
Of the three notebook makers, only Quanta has yet to build any kind of infrastructure in China, while competitors Acer and Compal invested years ago in computer monitor, PC shell, motherboard manufacturing and other component plants.
"Our third CRT monitor factory was finished in November ... [but] it could be converted for notebook production very quickly" if laws were to change, said Duke Lin, senior manager at Compal. "It would only take us one to three months to move the necessary equipment to China."
Lin figures his company could save on labor costs and lower component prices from Chinese companies -- between 3 and 5 percent of production costs -- if they moved notebook manufacturing to China.
That 3 to 5 percent cost reduction could help save the industry from dwindling margins or profit losses due to slowing PC and notebook sales this year.
Worldwide notebook computer shipments are expected to increase just 12 percent this year, versus nearly 20 percent growth each of the last two years, according to the Market Intelligence Center.
A number of analysts expect the slump to impact notebook makers here as foreign companies such as IBM, HP and Toshiba move to lower costs by asking their Taiwanese OEM partners to reduce their profit margins by a percentage point or two.
These factors are putting added pressure on notebook companies to build new factories in China. With profit margins so low and competition tight in Taiwan -- there are 10 manufacturers in the nation which produce the majority of Taiwan's notebook computers -- companies are clamoring to move production across the Strait.
Companies without China plans could require as much as a year or more to build the facilities needed to produce notebook computers.
PRESSURE FROM THE US: Huawei said a decision by the US was ‘arbitrary and pernicious, and threatens to undermine the entire [technology] industry worldwide’ Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) has stopped new orders from Huawei Technologies Co (華為) in response to Washington’s move aimed at further limiting chip supplies to the Chinese company, the Nikkei reported yesterday, citing multiple sources. The orders that TSMC took before the new ban and those that were already in production are not affected, and could continue to proceed if those chips could be shipped before the middle of September, the report said. TSMC, the world’s biggest contract chipmaker and a key Huawei supplier, on Thursday last week announced plans to build a US-based plant and on Friday added that
MediaTek Inc (聯發科), which designs chips used in mobile phones, yesterday launched its new 5G Dimensity 820 system-on-chip (SoC), targeting mid-range to high-end smartphones. The company expects the penetration of 5G technology to gain pace quickly this year and not be affected too much by the COVID-19 pandemic. MediaTek said it aims to expand its 5G chip portfolio this year to cover phones of varying prices after it shipped its first 5G SoC, the Dimensity 1000, last quarter. The Dimensity 820, made by Taiwan Semiconductor Manufacturing Co (台積電) on 7-nanometer technology, is designed for mid-range to high-end 5G phones. MediaTek expects to infiltrate the
TV and online retailer Momo.com Inc (富邦媒體) yesterday said it has set up a new logistics subsidiary, Fu Sheng Logistics Co (富昇物流), to oversee the company’s extensive shipping operations. Leveraging Momo’s 23 satellite warehouses and distribution centers nationwide, Fu Sheng will be in charge of executing the retailer’s same-day shipment plan for deliveries in Taipei, New Taipei City, Taoyuan, Taichung, Tainan and Kaohsiung, Momo said in a press release. Seeking to further shorten its supply chain, the company is to set up another seven satellite warehouses and distribution centers by the end of the year. “Fu Sheng has a fleet of 200 couriers
US-CHINA TENSIONS: The company said that it supplies self-designed chips to the Chinese company and, as such, is not affected by the latest US export restrictions Macronix International Co (旺宏電子) said it does not expect its shipments of memory chips to Huawei Technologies Co (華為) to be affected by the latest US export restrictions on the Chinese tech giant. “As long as the company [Huawei] places orders, we will ship [chips], unless the [Taiwanese] government restricts all Taiwanese companies from shipping” to Huawei, Macronix chairman and chief executive officer Miin Wu (吳敏求) said on Monday in Hsinchu. The US Department of Commerce on Friday took a further step to block chip supplies from non-US companies to Huawei by requiring foreign semiconductor makers to get US government permission before