Taipei, July 30, 2008 (CENS)--Microsoft Corp., the world`s largest software developer, is planning to set up a HIC (Hardware Innovation Center) in Taiwan, according to Zang Ya-Qin, chairman of Microsoft China.

Established after MTC (Microsoft Technology Center) and R&D center, the HIC will be Microsoft`s most important investment in Taiwan this year, Zang said, adding that the island`s superb R&D capability in the computer hardware sector has attracted his company to set up these centers on the island.

The HIC will move to develop innovative and high-tech consumer products, including digital home devices, media center devices, multimedia and smart mobile devices and IP (Internet protocol) devices, and will most likely seek cooperation with Taiwanese suppliers, such as High Tech Computer Corp. (HTC) and Tatung Co.

Zang said that while Apple Inc. independently handles the entire process to develop and produce iPhone, Microsoft Mobile Center prefers a tried-and-taken, win-win strategy: staying focused on software and farming out development and production of hardware to its downstream partners. The firm can finally take advantage of its unparalleled brand recognition to effectively promote finished mobile devices via telecom companies all around the world.

With the world`s largest handset brand Nokia already licensing use of Symbian, a platform for development of smartphones, free of charge, sales of Microsoft`s competing platform Microsoft Mobile has been affected. However, Zang noted, Microsoft Mobile`s features of providing an open platform for smartphone makers to develop their products effectively as well as high compatibility with PCs make the platform still competitive in the global market.

Noteworthy is that Taiwan`s HTC, a world-caliber vender of own branded handsets, has built close ties with Microsoft for a long time, as the brand now sells the most smartphones installed with Microsoft`s embedded operating systems in the world.

(by Steve Chuang)