Taipei, March 27, 2008 (CENS)--Synnex Technology International Corp., Taiwan`s largest electronics distributor, recently resolved to increase paid-in capital by NT$6 billion (US$200 million at US$1:NT$30.5) through issuing global depository receipts, a first by the company in the past nine years.

The company believes that the prospects for distribution channels in the mainland looks very promising as cross-strait policies will be further liberalized after the Taiwan Presidential election on March 22, in which the opposition Kuomintang party prevailed over the ruling Democratic Progress Party.

The increased capital will be used to boost operating funds and accelerate the pace of overseas deployment, especially in the mainland China. The company said it would complete a nationwide deployment project to distribute Nokia cellphones in the mainland by the end of this year.

At present, Synnex is Asia`s largest and the world`s third-largest electronics distributor. S.W. Tu, Synnex chairman and CEO, said that his company would establish 20 logistics centers in the mainland in the next five to 10 years.

Synnex said it has already established two wholly owned subsidiaries, each in the mainland and Australia. The company will focus overseas investments on these two markets, especially the mainland market where has strong domestic demand, in the years to come.

An institutional investor said Synnex will see sales from the mainland account for over 60% this year from last year`s 54% as it is expanding sales of branded notebook personal computers and adding such product lines as business information-technology products and cellphones in that lucrative market. It is expected Synnex will see sales of communications products from mainland market reach over NT$30 billion (US$983.6 million) this year and double to reach over NT$65 billion (US$2.13 billion) in 2009.

Synnex estimated it would need over NT$3 billion (US$98.36 million) to establish logistics centers in the mainland in the next few years. The company will inaugurate two logistics centers, each in Chengdu of Sichuan province and Nanjin Municipality, by the end of this year. Construction of a logistics center in Beijing will begin by the end of this year. It has also resolved to set up two logistics centers, each in Hangzhou of Zhejiang province and Guangzhou of Guangdong province, in 2009.

(by Ben Shen)