Quanta buys stake in Alpha Networks

Quanta Computer Inc (廣達電腦), the world's largest maker of notebook computers, said it bought a NT$1.1 billion (US$33 million) stake in a D-Link Corp (友訊) unit that makes networking equipment.

The Taipei-based Quanta bought a 17 percent stake in Alpha Networks Inc (明泰科技), it said in a statement to the Taiwan Stock Exchange Corp.

Hsinchu-based D-Link makes networking equipment to connect PCs and home electronic products.

Quanta Computer bought the stake as part of its strategy to link PCs with home electronics such as flat-panel televisions, a business the company is entering with affiliate Quanta Display Inc (廣輝電子), a Chinese-language newspaper reported, citing company spokesman Tim Li (李杜榮).

Quanta Computer declined to say whether it would increase its stake in Alpha, the report said.

Hon Hai Precision Industry Co (鴻海精密) had considered taking a stake in Alpha, the paper said, citing Hon Hai's chairman Terry Gou (郭台銘).

Quanta Computer, which faces increasing competition from Hon Hai, took the stake in Alpha in part to fend off its rival, the report said.

Hon Hai, the nation's largest electronics company, has said it plans to enter the flat-panel TV business through unit Innolux Display Corp (群創光電).