Quanta Computer Inc (
Quanta, Taiwan's biggest maker of notebook computers, will double its monthly output to 60,000 notebooks for Gateway as the US-based company cuts its suppliers, the paper said. Quanta declined to comment on the report in an announcement on the Taiwan stock exchange Web site.
Quanta is benefiting as customers such as Dell Computer Corp, Apple Computer Inc and Sony Corp increase orders to the Taiwan company to cut costs amid a slowing global economy.
Gateway doesn't need more than one supplier because the company is not big in the Asia-Pacific region, said David Toh, an analyst at ING Barings in Taipei.
LG Electronics, which makes notebook and desktop PCs under the LG IBM brand, said it hasn't lost any contracts. The company used to supply Gateway on a project basis, which came to an end in August, spokesman Fred Lee said. LG Electronics is still working with International Business Machines Corp and Compaq Computer Corp, he said.
Quanta makes between 25,000 and 28,000 notebooks a month for Gateway.
A monthly order of 60,000 units may boost Gateway's contribution to Quanta sales to about 8 percent from 5 percent, Toh said.
Taiwan notebook makers will probably account for 70 percent of the global market by 2006, from 50 percent now, according to Market Intelligence Center, an information technology researcher, the newspaper also said.
Quanta Computer's shares rose NT$1.50, or 1.4 percent, to NT$107.50.
RSS