Intel sees strong demand from Taiwan contract PC makers http://today.reuters.com/news/articleinvesting.aspx?view=CN&storyID=2006-10-17T103208Z_01_TP102774_RTRIDST_0_TECH-TAIWAN-INTEL.XML&rpc=66&type=qcna
Tue Oct 17, 2006
By Sheena Lee
TAIPEI, Oct 17 (Reuters) - Intel Corp. (INTC.O: Quote, Profile, Research), the world's top chip maker, said on Tuesday demand remains strong from Taiwan contract PC makers -- some of its top customers -- despite recent loss of market share to rival Advanced Micro Devices (AMD.N: Quote, Profile, Research).
Demand from contract manufacturers has been healthy, even as notebook PC makers face potential supply shortages following a recent recall of many batteries made by Sony Corp. (6758.T: Quote, NEWS, Research), said Kirk Skaugen, vice president of the digital enterprise group.
"I don't see a slowdown for Taiwan OEM, ODM makers," he told Reuters, refering to the industry term for contract manufacturers like Compal Electronics (2324.TW: Quote, Profile, Research) and Quanta Computer (2382.TW: Quote, Profile, Research) that make PCs for most of the world's biggest brands.
Taiwan contract producers make over 80 percent of the world's laptop computers, supplying the likes of Dell (DELL.O: Quote, Profile, Research) and Hewlett-Packard Co. (HPQ.N: Quote, Profile, Research).
Skaugen's comments echoed remarks by other Intel executives who said at a company developers' forum on Monday that overall perception from industry groups and laptop makers signal a strong fourth quarter.
At the forum, Intel said it shipped 5 million of its new dual-core processors in the first two months of its sales, amid signs of strong demand for laptop PCs.
Skaugen added that multi-national firms were continuing to look for design capabilities in Taiwan and China.
Intel is in the process of a major overhaul, including cost and job cuts and new product launches, as it seeks to gain back some of the share it has lost to AMD in recent years.
In September, Intel announced it would cut 10,500 jobs, or about 10 percent of its work force, following a three-month top-to-bottom review of operations.
Analysts have said the firm needs to take drastic action to reverse sliding profits and halt steady market share erosion.
Highlighting Intel's recent difficulties, market research firm iSuppli said last month the firm's share of total microchip industry revenue hit a four-year low in the second quarter. (US$1=T$33.2)
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