Hon Hai Precision Industry Co (鴻海精密) has clinched a NT$17 billion order for 2 million computers from Dell Computer Corp, the world's largest manufacturer of computers, Chinese-language media reported yesterday.
The bare-bones system, which does not include a monitor, is likely to be the OptiPlex SX260, a slim desktop computer aimed at corporate users.
Jonathan Chen (
The new order may increase Dell's purchases from Hon Hai by 50 percent.
"If this report is true, this will increase the number of computers Hon Hai makes for Dell [from four] to around 6 million in 2003," said Eve Jung (
Hon Hai spokesman Edmund Ding (
The company has recently proven a top choice amongst major manufacturers.
"Based on its high economy of scale, Hon Hai kept winning orders from Hewlett-Packard Co, Apple Computer Inc and Dell in the second half of 2002," Jung said.
"We estimate that Hon Hai's sales from the PC business could grow by 15 percent in 2003, with the main contribution from increasing orders for system assembly and motherboard manufacturing," he said.
With a recovery in the computer market still uncertain, slim models that can retail for around US$500 including a display screen should find favor in the corporate sector.
The last major round of corporate spending was in 1999 prior to the switch to year 2000, and Jung said many vendors are pinning their hopes next year on a new round of buying to replace older models that are now approaching the end of their life cycle.
If the expansion in system manufacturing from this order is added to Hon Hai Precision's growth in other product areas -- such as communications devices -- the company is heading for a rosy 2003, the analysts said.
"Next year Hon Hai will see around 30 percent growth overall," Chen said.
This means sales should top NT$300 billion next year from around NT$225 billion this year.
Hon Hai's increasing orders may be due to a change in its business model.
"Right now Hon Hai is aiming globally to be an electronics manufacturing service [EMS] provider," said Chen. "This order is part of that process."
An EMS provider is a higher grade of original equipment manufacturer because it also provides some design services.
The company is on track to achieve greater global positioning. Last week, Hon Hai was rated the No. 2 technology company in Taiwan -- second only to Taiwan Semiconductor Manufacturing Co (台積電) -- in the Far Eastern Economic Review's latest ranking of Asia's 200 leading companies.
Dell remained tight-lipped about the details of any orders for next year yesterday.
Quanta Computer Inc (廣達) chairman Barry Lam (林百里) is expected to share his views about the artificial intelligence (AI) industry’s prospects during his speech at the company’s 37th anniversary ceremony, as AI servers have become a new growth engine for the equipment manufacturing service provider. Lam’s speech is much anticipated, as Quanta has risen as one of the world’s major AI server suppliers. The company reported a 30 percent year-on-year growth in consolidated revenue to NT$1.41 trillion (US$43.35 billion) last year, thanks to fast-growing demand for servers, especially those with AI capabilities. The company told investors in November last year that
Intel Corp has named Tasha Chuang (莊蓓瑜) to lead Intel Taiwan in a bid to reinforce relations between the company and its Taiwanese partners. The appointment of Chuang as general manager for Intel Taiwan takes effect on Thursday, the firm said in a statement yesterday. Chuang is to lead her team in Taiwan to pursue product development and sales growth in an effort to reinforce the company’s ties with its partners and clients, Intel said. Chuang was previously in charge of managing Intel’s ties with leading Taiwanese PC brand Asustek Computer Inc (華碩), which included helping Asustek strengthen its global businesses, the company
Taiwanese suppliers to Taiwan Semiconductor Manufacturing Co. (TSMC, 台積電) are expected to follow the contract chipmaker’s step to invest in the US, but their relocation may be seven to eight years away, Minister of Economic Affairs J.W. Kuo (郭智輝) said yesterday. When asked by opposition Chinese Nationalist Party (KMT) Legislator Niu Hsu-ting (牛煦庭) in the legislature about growing concerns that TSMC’s huge investments in the US will prompt its suppliers to follow suit, Kuo said based on the chipmaker’s current limited production volume, it is unlikely to lead its supply chain to go there for now. “Unless TSMC completes its planned six
TikTok abounds with viral videos accusing prestigious brands of secretly manufacturing luxury goods in China so they can be sold at cut prices. However, while these “revelations” are spurious, behind them lurks a well-oiled machine for selling counterfeit goods that is making the most of the confusion surrounding trade tariffs. Chinese content creators who portray themselves as workers or subcontractors in the luxury goods business claim that Beijing has lifted confidentiality clauses on local subcontractors as a way to respond to the huge hike in customs duties imposed on China by US President Donald Trump. They say this Chinese decision, of which Agence
RSS