10.02.2001
Gov't to decide in Oct. on NB mfg. in PRC

• Development: The local press reports that the Ministry of Economic Affairs (MoE) will make a decision on whether or not to lift restrictions on notebook PC manufacturing in China later this month. Taiwan notebook makers are optimistic about the final decision. With the govt’s go-ahead, Compal predicts China production would account for 30% of total notebook PC output and 15% of handsets by 2002.

• Analysis: We believe Taiwanese notebook PC makers will benefit from profit margin improvement and market share expansion. Once production restrictions are lifted, first-tier players will start manufacturing in China almost immediately as many already have plants established there.

• Primasia View: We expect to see sales and profit growth once China production bases go operational.