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  • Top Computer Companies Seen Buying More Memory from Taiwan
  • January 25, 1999 (TAIPEI) -- Semiconductor memory is expected to become the most wanted product from Taiwan for international information product manufacturers in 1999, industry sources say.
    International Business Machines Corp. (IBM) will place its first memory order here, and Hewlett-Packard Co. (HP) also decided to increase procurement from Taiwan.

    Kingston Technology Co. plans to shift its memory module research center to Taiwan, and raise its local purchases on an annual basis.

    Over the past couple of years, Japan and Korea have gradually stopped investing in the semiconductor industry. Taiwan, on the other hand, has continued investing at full speed. This is the key reason it is now so attractive to foreign firms.

    IBM says its decision to buy memory from Taiwan is especially meaningful, and the company has even added one employee to take charge of related business. IBM forecasts that Taiwan will see great opportunities when the next wave of business boom arrives.

    IBM used to produce memory by itself in the United States, and its new strategy is to leave U.S. production intact, while placing all orders for additional demand in Taiwan.

    HP, praising Taiwan as being as competitive as Japan and Korea, says it will buy more semiconductor products from Taiwan in the following year.

    David Sun of Kingston is also optimistic about the future of the local semiconductor sector. He says his company will pour more investment into Taiwan, and gradually move its marketing hub to Taiwan from Japan, Singapore and Hong Kong. In the future, he adds, Taiwan will also become Kingston's pivot for manufacturing, design, service, and marketing in the Asian region.

    (Commercial Times, Taiwan)

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    Updated: Fri Jan 22 14:04:26 1999 PDT