Mitac joins Guangzhou Honda's supply chain

Taipei, Aug. 11, 2005 (CENS)--Mitac Inc., a leading information technology (IT) maker in Taiwan, recently announced that one of its subsidiaries in mainland China has successfully ventured into the auto-parts supply chain of Guangzhou Honda Automobile Co., Ltd. (GHAC) to directly supply the automaker.

Mitac Precision Technology Corp., Mitac's mainland China subsidiary, has been actively deploying its auto-parts business and recruiting talented professionals in related fields. The subsidiary set up an auto-parts plant in Shuende, Guangdong Province of mainland China last year, and recently also invested in Vietnam to expand its auto-parts business.

Mitac Precision originally shipped some parts to a tier-one parts supplier of GHAC before and has begun direct shipment to the Chinese automaker since the second quarter last year. Currently, the company's business scopes encompass precision mold/die development, pressing, vacuum sputtering, and connector manufacturing.

Mitac Precision registered revenue of over NT$10 billion (US$314.47 million at US$1: NT$31.8) last year. It recently announced a US$10 million investment project in Vietnam to set up a plant there.

Mitac Precision recently also won a big-ticket order from Sony of Japan for PSP (Playstation Portable) mechanical parts, at an annual capacity of 10 million sets. Mitac Precision pointed out that the traditional plastic-injection manufacturing mode could no longer meet Sony's increasingly stringent requirements for consumer electronic products, and therefore it has introduced the most advanced rapid heat cycle molding (RHCM) technique from a Japanese partner, which helped it defeat rivals to win Sony's business.