China's Huawei to Purchase More from Taiwanese Suppliers of Telecom Equipment

Taipei, July 5, 2011 (CENS)--To expand its global market shares, the China-based Huawei Corp., now the world's second-largest telecom solution provider, is going to raise its purchases from Taiwanese suppliers this year.

Keeping wielding its rapidly increasing influence in the global industry of telecom equipment and systems, Huawei has projected a 10% yearly growth in its global sales revenue of US$31 billion for this year. Therefore, the firm has decided to reinforce its cooperation with Taiwanese suppliers and will make over NT$100 billion worth of purchases from them.

Accordingly, the firm, which aims to double its handset shipment to 60 million units this year, has intended to outsource production of not just handset parts, but also more smartphones and tablet PCs to Taiwanese manufacturers. For sure, the two kinds of products will significantly increase in numbers on the firm's purchase list this year compared to the past.

Taiwan-made display panels will also make up the majority of Huawei's purchases from the island. As its newly debuted tablet PCs, MediaPad, scheduled to hit the market in the second half of this year, are mainly manufactured in Taiwan, the firm noted that it has contracted Taiwan's Chimei Innolux Corp. to supply more high-definition display panels for the production. Besides, touch panels and parts used in the firm's 3.5-inch U8650 smartphones will also come from Taiwanese companies.

The firm indicated that its purchase category also includes base station and core network equipment, network devices and related components and IC chips, with Foxconn Technology, Chimei Innolux, Cheng Uei Precision Industry, Wistron Corp., Delta Electronics, Prime Electronics & Satellitics Inc., Alpha Networks Inc., Microelectronics Technology Inc., Gemtek Technology Co., Accton Technology Corp., Acbel Polytech Inc., Ralink Technology Corp., TrendChip Technologies Corp. and Universal Microwave Technology Inc. on its supplier list.