Fri, Jul 19, 2002 page10

• HP sees big profits from Strait trade

  INFO TECH The US-based computer maker says it will make big money from supporting the technology used in facilitating trade between China and Taiwan

  • By Dan Nystedt / STAFF REPORTER
  • • 
    • 
    • 

  Executives at Hewlett-Packard Co said yesterday that new information-technology support meant to facilitate trade between Taiwan and China could be worth as much as NT$3 billion in new business by the end of next year.

  As much as 75 percent of that business could be realized this year, according to Rosemary Ho (何薇玲), country general manager for HP-Taiwan.

  From semiconductor foundries to notebook and desktop-computer makers, companies throughout Taiwan and China will be able to tap into a new system to connect companies with their operations throughout the "greater China" economic entity, which includes Hong Kong, Taiwan and China.

  Companies already signed on under the plan include two Chinese chipmakers, Semiconductor Manufacturing International Corp (中芯國際集成電路) and Grace Semiconductor Manufacturing Corp (宏力半導體), both invested with Taiwanese capital and run by Taiwanese engineers. Taiwanese computer-parts maker Hon Hai Precision Industries Co (鴻海精密) and computer-monitor makers AU Optronics Corp (友達光電), Chunghwa Picture Tubes Ltd (中華映管) and Hannstar Display Corp (瀚羽彩晶) are also among the companies involved in the HP plan.

  Although trade between the China and Taiwan are rapidly expanding, direct links are still banned by both governments.

  Despite the continued restrictions, Taiwanese companies have invested an estimated US$70 billion in China over the past two decades. In November, China replaced the US as Taiwan's largest export destination, according to statistics provided by the Board of Foreign Trade.

  Between January and April of this year, US$11.46 billion worth of goods flowed between the two economies via the port of Hong Kong and third-country locations, the board said.

  As Taiwanese investment and manufacturing operations in China become more complex, smooth links to all parts of their businesses has become increasingly important.

  Leslie Koo (辜成允), chairman of KG Telecom Co (和信電訊), a local firm that has already signed up for the new HP package, said the service would help facilitate its business across the Strait.

  KG has a roaming deal with China Mobile (中國移動), the largest mobile-phone service provider in China with over 78 million subscribers, to allow Taiwanese customers using i-mode wireless Internet services to access the Internet through their cellphones while in China.

  HP-China president, Sun Chen-yao (孫振耀), said China will be one of the most profitable areas for HP this year.

  "Following WTO entry, China is moving on to the next step [in economic development]," Sun said.

  He said huge growth opportunities exist in the telecommunications and government sectors.

  Last year, HP's China operations brought in revenues of US$1.2 billion and purchasing orders worth US$3.5 billion between November 2000 and November 2001.

  HP's business in China has grown an average of 25 percent per year for the past five years and it expects the trend to continue for the next several years, Sun said at a conference late last year.

  Comments will be moderated. Keep comments relevant to the article. Remarks containing abusive and obscene language, personal attacks of any kind or promotion will be removed and the user banned. Final decision will be at the discretion of the Taipei Times.
• Most Popular

  • 1

    F-16 Block 70 jets to arrive this month, official says

  • 2

    German warships to pass through Strait

  • 3

    US House passes Taiwan conflict act

  • 4

    Taiwan-Tokyo travel pass launched

  • 5

    US military warns PLA against making ‘dangerous’ moves