11.15.2001
Local NB giants singled out for more US business

• Dell and HP have both indicated they will continue to increase outsourcing of notebook PCs, pocket PCs and servers from Taiwan next year, possibly to US$7bn and US$6bn, respectively. Compaq and IBM are expected to follow suit. Meanwhile, component purchases from Taiwan for final assembly in China are also expected to grow following China's accession to the WTO. Having a well-established China production base will boost orders for Taiwanese NB makers. We believe Compal and Quanta are set to Outperform among peers due to scale advantages and established customer relationships.