Inventec Buys Majority Stake in Connector Maker Speed Tech

Taipei, June 24, 2009 (CENS)--The Inventec Group and Namchou Group recently jointly bought a majority stake in the local connector maker Speed Tech Corp.

Speed Tech is expected to become a major supplier to Taiwan-based notebook PC manufacturers as Inventec chairman Yeh Kou-i has been maintaining close friendships with the owners of most world-class contract notebook PC makers in Taiwan, such as Quanta Computer Inc., Compal Electronics Inc. etc..

With Inventec onboard, Speed Tech is expected to diversify into LEDs, solar-power energy, wireless communications etc., also enabling Inventec Group's vertical integration among notebook PC, server, and cellphone industries more complete.

Industry sources said that Speed Tech had issued 40 million shares to raise needed funds and Yeh was the only purchaser of all the privately issued shares, giving Yeh 21% stake in Speed Tech to make him the largest shareholder. Speed Tech has smoothly tapped into the supply chains of local major notebook PC and cellphone makers such as Inventec, Quanta, Compal Communications Inc., Asustek Computer Inc., Wistron Corp. etc. The company's monthly shipments of radio frequency (RF) connectors have tripled to 12 million units and the volume is expected to further increase to 18 million.

According to industry sources, Yeh, in fact, has become a key operator behind the scene in recent years, but his widely spread investments, ranging from calculators and electronic language translators in the early years to server, notebook PC, connector, LED, solar-cell, IC chips etc., have given him ample influence.

Currently, Inventec Group is the largest maker of servers, electronic translators, and business notebook PCs in Taiwan.