07.16.2001
Hon Hai eyes NB manufacturing

• Development: Hon Hai has assembled an R&D team comprised of more than 30 people in preparation for a pilot NB manufacturing service.

• Analysis: This news reflects Hon Hai’s difficulty in identifying new business opportunities in the Desktop PC sector. We anticipate Hon Hai to break into the NB market through its largest client Compaq, but timing is unknown.

• Primasia View: We have placed Hon Hai under review for possible upgrade, which will be based on disclosure of 1H01 report and 3Q01 revenue performance.

VincentChen@Primasia.com +886-[0]2-2547-8868