Compal sets up technology center

Following the establishment of a research institute by Quanta Computer Inc., Compal Electronics Inc., one of Taiwan's leading contract manufacturers of notebook personal computers, has recently set up an advanced technology center to concentrate on the research and development of basic materials and components.

Domestic NB contract manufacturers said they have to increase investments in research and development to weather this thin-profit era.

At present, Taiwan has an 85% global market share in contract production of NBs, with Quanta and Compal together dominating half of the global contract supply. Quanta and Compal are competing with each other in the fields of clients, shipments and R&D.

Quanta said it has spent NT$8 billion (US$246.15 million at US$1:NT$32.5) to set up a research institute at its headquarters in Linkou of Taipei County, northern Taiwan to take charge of developing new-generation PCs, digital home entertainment products, and personal handheld devices. Quanta chairman Barry Lin takes this institute as a secret weapon behind the company's next-stage growth.

Compal noted its senior vice president S.T. Kung is in charge of the operation of the advanced technology center. At present, the center has 50 technicians responsible for the development of innovative materials and new technologies that meet the international environment-protection standards.

The center, said Compal, will focus on the development of new chemical materials to cope with the emergence of new electronic products.

Compal's parent Kinpo-Compal Group said it is consolidating the resources of all subsidiaries. In addition to the establishment of a united procurement mechanism, the group has also set up three management committees of investments, R&D and production to optimize the utilization of the resources within the entire group.

The group said the multiple management committees would help facilitate the horizontal connections among the subsidiaries within the group so that the intra-group resources can be consolidated.

source & copyright: CENS