Quanta to tap auto-electronics business

Taipei, March 24, 2005 (CENS)--Quanta Computer Inc., the No. 1 notebook PC contract producer in Taiwan, has announced plans to set up an automobile system business unit--ASBU to tap auto-electronic business, according to company CEO Michael Wang.

Quanta also plans to debut own-brand liquid crystal display (LCD) TV products soon, the CEO added.

Industry sources said that Quanta's announcement is expected to trigger intensive competition among leading information technology (IT) conglomerates in Taiwan in the new business field--auto electronics. Another two leading IT groups have also announced plans to tap the auto-electronics business, including Hon Hai, the world's largest maker of barebone PCs, connectors and game consoles, and Asustek Computer Inc., the No. 1 maker of motherboards in Taiwan and a leading notebook PC contract supplier.

Hon Hai expects to challenge an annual group revenue goal of NT$670 billion (US$21.61 billion at US$1: NT$31) this year, and Austek and Quanta over NT$400 billion (US$12.9 billion) and about NT$500 billion (US$16.13 billion), respectively.

According to Wang, his company decided to tap the auto-electronic business after more than one year of evaluation, as electronic parts have accounted for about 30% of the total cost for a modern automobile. Wang said that electronics makers are expected to win some business chances in vehicle computers, global positioning system (GPS) navigation, and in-car multimedia entertainment systems.

Wang stressed that his company would not develop own-brand notebook PC sales as the company has contract supplied notebook PCs to the world's top-10 brands. With the support of panel supply from affiliated Quanta Display Inc., Taiwan's No. 4 maker of large-sized thin film transistor-liquid crystal display (TFT-LCD) panels, Wang said that his company tends to develop its LCD TV business on its own and aims for annual sales of one million LCD TVs this year.

In addition, Wang said, Quanta would try to maintain a certain level of profit margins for its notebook PC business. Quanta aims to challenge a 30% share of the global notebook PC market this year and expects to ship about 10 million cell phones.