Delta Electronics to Expand Production in Dongguan

Taipei, May 26, 2006 (CENS)--Delta Electronics Group, Taiwan' s leading manufacturer of power supplies, will invest more than US$200 million to set up a new production base for the production of high-capacity power supplies in the Shihchieh suburb of Dongguan in Guangdong province, mainland China.

Delta noted the new production base would concentrate on the development and production of high-capacity power supplies for LCD (liquid crystal display) TVs.

After the new facility begins mass production, Delta hopes to supplant large Japanese firms as the world' s largest supplier of power supplies for high-definition TVs.

Delta said it has acquired a new, 424-acre parcel of land in Shihchieh to build up the new production base, which will be 50% larger than its present production base of 280 acres, also in Shihchieh.

At the new production site, Delta will build two to three large-sized plants for the production of high-capacity power supplies used in LCD TVs, medium- and high-tier servers, and communication products.

C.C. Tseng, president of Delta China, said the new production base in Shihchieh would adopt a ''green'' design concept to save electricity and water, as well as the fees the company must pay for these utilities.

Delta' s present production base in Shihchieh has five large-sized plants focusing on the production of a variety of power supplies, networking products, transformers, and electric fans. With total investment of US$200 million, it is currently the world' s largest production base for the power supplies used in desktop computers. The production base is also Delta' s operating headquarters in the mainland.

At present, Delta is the world' s largest supplier of power supplies with a 55% share in the international personal computer power supply market. It also produces power supplies for iPod music players for Apple Computer of the U.S., for PS2 video game consoles for Sony Corp. of Japan, and for Xbox360 video game consoles for Microsoft Corp. of the U.S. Nevertheless, its share of the world' s LCD TV power supply market remains under 5%.

Delta CEO Y.C. Hai noted his company would see monthly production capacity of power supplies double to reach 600,000 units by the end of this year from the present 200,000.