Flextronics boss bullish in Taipei

Michael Marks said the company is expecting a dramatic spurt in sales in Taiwan, and a number of firms apparently want a piece of the action

Flextronics International Ltd chief executive officer Michael Marks yesterday said that the company's revenue generated from Taiwanese customers is expected to grow by a factor of four this fiscal year from last year.

The company produced US$100 million in electronics goods for Taiwanese customers in the fiscal year 2005 that ended on March 31. Marks said the figure was expected to grow to US$400 million in the new fiscal year.

Marks was in town yesterday to meet with representatives from several local technology companies. He didn't specify what companies he was scheduled to meet.

A Chinese-language newspaper reported earlier in the day that Marks was to meet with Asustek Computer Inc (華碩) representatives on the development of components for products such as handsets, notebook computers and game consoles.

Asustek, the nation's largest computer motherboard maker, and Marks declined to comment on the report.

But a source close to Flextronics said yesterday that Marks did say in a closed-door briefing with local media that Flextronics would not enter into PC contract making and instead focus on handset assembly.

It was reported that Marks would also meet representatives of Quanta Computer Inc (廣達) and Compal Electronics Inc (仁寶), but sources would not confirm this.

Handset assembly accounts for 33 percent of Flextronics' total revenue, with Sony Ericsson one of its major customers, the source quoted Marks as saying.

Flextronics, which competes with Taiwan's Hon Hai Precision Industry Co (鴻海精密) in the EMS business, reported US$15.9 billion in net sales for fiscal 2005, up 9.7 percent from the previous year, the company said in a statement issued yesterday.

Marks, who took up his current position in 1993 and is slated to retire this January, forecast net sales for the new fiscal year at US$16.5 billion.

source: Taipei Times