Taiwan WLAN makers eye Centrino contracts

Taipei, Feb. 11, 2003 (CENS)--Several major wireless local area network (WLAN) product makers in Taiwan are competing to win orders from Intel Corp. of the U.S. for WLAN modules compatible with Intel's latest Centrino processor, which is scheduled to debut in March.

Intel claims that its Centrino delivers cutting-edge system performance and low-power enhancements to extend battery life in notebook PCs, combined with integrated wireless connectivity and standards-based security support. The technologies represented by the Intel Centrino brand will include a microprocessor (formerly code-named "Banias"), related chipsets and 802.11 (Wi-Fi) wireless networking capability.

Industry sources said that Intel plans to pour over US$60 million in promoting the Centrino technology and cooperate with major notebook PC makers to jointly develop the market. PCs equipped with the new chip unit will bear the "Centrino inside" logo like the previous "Intel inside".

Intel it estimated that there will be about 30 million notebook PCs and many other handheld devices to be sold in the coming three years equipped with WLAN capability.

Industry sources said that Intel will incorporate WLAN functionality in each of its new Centrinos. However, the roll out date of the company's new WLAN module chipset, Calexico, has been delayed several times. Many local WLAN module suppliers are still aggressively competing for the module orders including GemTek Technology Co., Ltd. Asustek Computer Inc. and D-Link Corp.

The Industrial Economics & Knowledge Center (IEK) of the Industrial Technology Research Institute said that Taiwan supplied 80% of the global supply of WLAN products in 2002. Most WLAN cards marketed with big international brands such as Intel, Dell, HP and Toshiba etc. are produced in Taiwan on a contract basis.

Many local manufacturers have also been developing built-in WLAN products with big international brands, including GemTek (supplier to Dell and HP) and Askey Computer Corp. (Toshiba and Sony).

Recognizing its WLAN chipset technology is still one step behind such major rivals as Intersil and Broadcom, Intel is accelerating the development of relevant products and plans to commission Taiwan partners to produce them, sources said.