Royal Philips Electronics of the Netherlands and Taiwan's BenQ Corp (
Philips will control 51 percent of the new company, Philips BenQ Digital Storage, while BenQ will hold the remaining 49 percent.
The new company, which will open next month, is expected to develop optical storage devices such as CD-ROM and DVD-ROM drives for desktop and laptop computers.
The partnership aims to exploit the strengths of each company.
"Philips leads in technology and innovation in research, whereas BenQ is strong in manufacturing, product development and marketing," BenQ vice president William Wang (王威) told the Taipei Times yesterday. "This joint venture is very complementary and beneficial to both partners."
Philips Taiwan's Joseph Chuang (莊鈞源) will head the new company.
"This is the first example of Philips cooperating with local companies," Chuang said yesterday.
The move is part of the Dutch giant's departure from manufacturing, which is no longer commercially viable in Europe.
By outsourcing production to Asia, Philips can make the most of its strengths in research and exploit Asian expertise in low-cost manufacturing, Chuang said.
BenQ and Philips have been working together for over 10 years -- an important factor in Philips' choice of BenQ as a Taiwan partner to co-develop storage devices.
The joint venture is one of a growing number of partnerships between Taiwanese manufacturers and international high-tech companies. The new company will have its own marketing and sales teams and BenQ will be in charge of manufacturing.
"Philips wants to outsource all of its manufacturing to Taiwan and China and keep its research at its headquarters in the Netherlands," said Benny Lo (盧志恆), an analyst at Primasia Securities in Taipei.
In addition to BenQ's expertise in manufacturing and marketing, the company's position in the China market may also have contributed to the decision, Lo said.
BenQ is one of the leading makers of PC peripheral products -- including storage devices -- in China. Philips may be seeking access to BenQ's distribution channels in China through this joint venture.
BenQ is also one of the largest manufacturers of optical storage drives in Taiwan, Lo said.
Last year the company exported 15 million storage drives and hopes the new company will double that number.
"This is very good for BenQ," Lo said.
One area of concern for analysts is BenQ's cellphone business, which makes up 40 percent to 50 percent of the company's income, making the company the largest supplier of handsets in Taiwan.
Anticipated orders from industry leader Nokia Oyj have been slow to materialize. Officials from Nokia visited BenQ last September, but BenQ has not increased its orders of handsets components, suggesting no new orders, Lo said.
An increase in the sales of storage products from the new Philips-BenQ joint venture should help to offset any weakness in the handset market this year.
Another area of concern is BenQ's relationship with its existing customers.
"Pioneer Corp is one of BenQ's largest customers for DVD-ROM drives," said Hiko Lin (林彥成), an optical drive industry analyst at the government-funded Market Intelligence Center. "Pioneer may find another supplier and terminate its relationship with BenQ as a result of this partnership with Philips."
Last year Taiwan produced 79.4 million optical storage drives, worth US$3 billion, Lin said. This year Lin forecasts the figure will grow to 81 million units, but due to falling prices, they will be worth US$2.7 billion.
The domestic unit of the Chinese-owned, Dutch-headquartered chipmaker Nexperia BV will soon be able to produce semiconductors locally within China, according to two company sources. Nexperia is at the center of a global tug-of-war over critical semiconductor technology, with a Dutch court in February ordering a probe into alleged mismanagement at the company. The geopolitical tussle has disrupted supply chains, with some carmakers reportedly forced to cut production due to chip shortages. Local production would allow Nexperia’s domestic arm, Nexperia Semiconductors (China) Ltd (安世半導體中國), to bypass restrictions in place since October on the supply of silicon wafers — etched with tiny components to
Singapore-based ride-hailing and delivery giant Grab Holdings Ltd has applied for regulatory approval to acquire the Taiwan operations of Germany-based Delivery Hero SE's Foodpanda in a deal valued at about US$600 million. Grab submitted the filing to the Fair Trade Commission on Friday last week, with the transaction subject to regulatory review and approval, the company said in a statement yesterday. Its independent governance structure would help foster a healthy and competitive market in Taiwan if the deal is approved, Grab said. Grab, which is listed on the NASDAQ, said in the filing that US-based Uber Technologies Inc holds about 13 percent of
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday received government approval to deploy its advanced 3-nanometer (3nm) process at its second fab currently under construction in Japan, the Ministry of Economic Affairs said in a news release. The ministry green-lit the plan for the facility in Kumamoto, which is scheduled to start installing equipment and come online in 2028 with a monthly production capacity of 15,000 12-inch wafers, the ministry said. The Department of Investment Review in June 2024 authorized a US$5.26 billion investment for the facility, slated to manufacture 6- to 12nm chips, significantly less advanced than 3nm process. At a meeting with
Taiwan’s food delivery market could undergo a major shift if Singapore-based Grab Holdings Ltd completes its planned acquisition of Delivery Hero SE’s Foodpanda business in Taiwan, industry experts said. Grab on Monday last week announced it would acquire Foodpanda’s Taiwan operations for US$600 million. The deal is expected to be finalized in the second half of this year, with Grab aiming to complete user migration to its platform by the first half of next year. A duopoly between Uber Eats and Foodpanda dominates Taiwan’s delivery market, a structure that has remained intact since the Fair Trade Commission (FTC) blocked Uber Technologies Inc’s
RSS