07.17.2001
Compaq to cut Taiwan OEM partners

• Development: Compaq may reduce its Taiwan OEM manufacturers from four to two. Inventec, Arima, Quanta and Mitac Tech (unlisted) are the current OEM partners.

• Analysis: Compaq is the sole client for Inventec, and Arima relies on Compaq for 60% of their total yearly shipment. Quanta, Compaq’s newest partner, began notebook PC shipment this year.

• Primasia View: We believe there will be less risk to Quanta in the event that it is dropped, due to a well-diversified customer base, while the likelihood of Inventec being dropped is low.

MarthaChen@Primasia.com +886-[0]2-2547-8878