Taiwan PC Makers Look to Czech Republic for New Manufacturing
Base
Faced with a growing SARS crisis in China and Taiwan,
Taiwan's personal computer and component manufacturers
are looking for alternate places for manufacture. In central
Europe, the Czech Republic appears to be their top choice.
Leading Taiwan makers who are looking at the Czech Republic
as a new manufacturing center include Quanta, Leo Computers,
Sampo and AsusTek. All of these makers are OEM (original
equipment manufacturers), who manufacture and sell computers
for other companies, such as IBM, Sony, Dell and Apple.
A popular destination for investors is the new Brno industrial
park.
These OEM companies have also brought a large number
of electrical and electronic component makers with them
to the Czech Republic. Together, they work as a "club",
bringing in raw materials for manufacture into components,
which they sell to the OEM companies for assembly into
final products. More Taiwan makers are expected to join
the "club".
Compared to western Europe, labor costs are only one-third
to one-fourth as much. In addition, the Czech Republic,
prior to 1989, served as a major technology development
center for the Eastern bloc of nations, making arms, radar
and other hi-tech products.
Quanta, which has been a major maker of personal computers,
will begin assembly of servers in the third quarter of
this year. Most of these servers will be sold to European
community nations, which have a growing market for servers.
The main destination for most of the products are other
European countries.
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