Most Taiwan's Electronic Giants Establish Branches in Chinese Mainland

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Last updated at: (Beijing Time) Tuesday, November 05, 2002

Most Taiwan's Electronic Giants Establish Branches in Chinese Mainland

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Billboard of Taiwan's top 20 listed electronic enterprises in the last three quarters of the year was released last Saturday. According to the billboard, seven tenths have set up branches in the Chinese mainland with a quarter of them had their manufacturing bases established here, indicating a continuous rise of contribution made by factories in the mainland to their Taiwan-based headquarters.

As learned, 13 out of the top 20 enterprises including Foxconn Electronics, Inc., Quanta Computer, Inc., ASUSTek Computer, Inc., Compal Electronics, Inc., and Delta Electronics Inc., have made investments in the mainland. Among them Foxconn, Delta as well as Lite-On Technology had over eight tenths of their production bases established in the mainland, the Taiwan-based headquarters almost making no profits.

In terms of contributions made by mainland-based branches in the last three quarters, Delta stood out first, reaping a profit of NT$ 3.1 bn, accounting for 87 percent of its parent company's total. Lite-On Technology harvested NT$ 4.6 bn, making up 70 percent; ECS NT$ 2 bn, occupying 70 percent of its profit; Foxconn got in NT$ 7 bn, 48 percent while others such as Compal, ASUSTek, and Quanta Computer, Inc. etc all witnessed a 5-10-percent portion of their mainland's branches.

Next year, when Quanta, Compal, TSMC, Ltd., and UMC, Ltd. make an investment in Shanghai one in the wake of the other, the contribution ratio of mainland-based factories to their respective Taiwan-based parent companies is expected to reach 50 percent rather than 30-40 percent as done this year. This will become the most important and massive source in profit-making for electronic manufacturing enterprises.

By PD Online Staff Zhu Lizhen

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