The Hewlett-Packard Co is expected to deliver its first lineup of low-cost desktop computers developed by its Taiwanese partners early next year, company executives said yesterday.
The products will be the expected result of a new product development center (PDC) christened by HP officials yesterday.
"We're looking to start delivering products either by the end of this year or earlier next year," said Alan Reed, vice president of HP's Personal Systems Group in charge of desktop-computer business.
"The PDC project for our notebook team is up and running, and we are expecting the first customer shipment at the end of October or the beginning of November this year," said Tom Mitchell, vice president of HP's Personal Systems Group of its notebook computer business.
The center aims to integrate its supply partners directly in the product design process and co-develop products that best meet the needs of regional marketplaces, HP said.
"It is hoped the center's setup will improve our time-to-market capability and leverage our resources in Taiwan," said Reed. "And we are really focused on emerging Asian markets with the products we're going to be launching."
HP also has PDCs in Singapore, Shanghai, the US, Latin America and Europe.
HP selected Taiwan as the location for one of its global PDCs because of local makers' reputation for cost-efficient manufacturing. The company may soon close its Singapore and Shanghai centers, said Lee Yuan-sung (李元松), HP's director for e-commerce business planning and development.
The new PDC -- which is slated to develop desktop PCs, notebook PCs, hand-held devices and servers -- is expected to increase its staff to 70 from the current 15 by the first quarter of next year, and to 90 over the next three years, Lee said.
Big spender
HP's PDC represents the largest investment in a development center in Taiwan, said Rosemary Ho (
One industry watcher said the HP project will allow local supply partners to learn more about product design technology. It will also help to improve HP's time-to-market capability as the PDC will quickly channel market information to local contractors.
"It will be a win-win situation for both HP and its local contract makers," said George Wu (
The government is promoting the transformation of Taiwan's industry by offering investment incentives such as tax breaks to multinational corporations for setting up regional research-and-development centers here.
The PDC's opening is music to the ears of bureaucrats and manufacturers, Wu said.
"Neither the government, HP or local companies will be disappointed by the announcement."
While the center will enhance local information-technology industry competence in the areas of industrial design and marketing development, Wu said it will also help cement supply-chain relationships between local contractors and HP.
"But most importantly, the PDC will allow HP to gain more understanding about their local suppliers and help control their local procurement costs," Wu said.
"As for Taiwanese makers, the new PDC suggests a more transparent mechanism than before, where manufacturers will be able to understand HP's requirements more clearly -- from product development to final assembly."
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