Sony, NEC, Fujitsu to make NT$300 B. purchases from Taiwan in 2004

Taipei, Dec. 9, 2004 (CENS)--Three big Japanese information technology (IT) brands, Sony, NEC and Fujitsu, are expected procure over NT$300 billion (US$9.32 billion at US$1: NT$32.2) worth of products from Taiwan this year, according to industry sources.

Top executives of all the three Japanese firms have come to Taiwan this year to discuss with major local suppliers over next year's contract supply issues, including Sony's president & CEO Kunitake Ando, NEC chairman Hajime Sasaki, and Fujitsu chairman Naoyuki Akikusa.

Sony, NEC and Fujitsu are all among the top-10 international procurers with Taiwan, the world's largest production bases of desktop and notebook PCs, and have been maintaining close cooperation ties with local contract suppliers. In addition to setting up ties with local supply chains, the three Japanese firms have also been actively extending their cooperation into design and R&D fields with local partners. Currently, the largest procurement categories of the three companies are desktop PCs and notebook PCs.

All of the top-five thin film transistor-liquid crystal display (TFT-LCD) panel makers in Taiwan have also joined the supply chains of Sony, NEC and Fujitsu, and are expected to supply more and more information and LCD TV panels to the big Japanese IT brands after their 5.5th- and sixth-generation panel plants begin mass production next year.

Both NEC and Sony were granted the "Industry Contribution" awards by Taiwan's Ministry of Economic Affairs (MOEA) for their annual procurement values outstripping US$2.5 billion this year.

During his trip to Taiwan in October, NEC chairman Sasaki said that his company has set up a joint development center in Taiwan, and will establish a glass processing facility and a cold cathode fluorescent lamp (CCFL) tube plant in Taiwan, in addition to increasing procurements from the island.

Economics Minister Ho Mei-yueh pointed out that NEC is expected to procure over NT$120 billion (US$3.73 billion) worth of IT products from Taiwan this year, up over 20% from last year's NT$90 billion (US$2.8 billion).

Sony chairman Ando recently announced that his company's annual procurement value from Taiwan this year would reach NT$165 billion (US$5.12 billion). Sony currently outsources about two-thirds of its LCD TVs, with Taiwan's Chi Mei Optoelectronics Corp. (CMO) becoming a major contract supplier.

Sony, NEC and Fujitsu's procurements from Taiwan
Company	2003 Procurement	2004 Procurement	Major Category
Sony	NT$150 B.	NT$165 B.	Notebook PCs, game consoles, information panels, personal digital assistants (PDAs), LCD TV panels.
NEC	NT$90 B.	NT$120 B.	Notebook PCs, desktop PCs, telecom equipment, networking equipment, semiconductor, severs.
Fujitsu	NT$24.4 B.	Over NT$25 B.	Information and LCD TV panels, PDAs, semiconductor.

Source: The companies.