As its production base in eastern China is ramping up, Arima Computer estimates that its mainland production will account for half of its 2002 annual output of 1.84 million notebooks.
The largest of all Taiwanese notebook makers, Arima’s vast 688-hectare site at Wujiang, Jiangsu Province was nevertheless put in a holding pattern last year as its business tumbled. Now with notebook orders picking up and its biggest client, Compaq Computer, strengthening its China efforts, Arima is working to complete its second plant there next month. Eventually it plans to move all its Taiwan operations across to the mainland, the company said.
Arima currently produces only a small quantity of barebone notebooks in Wujiang, which are shipped to Taiwan for final assembly. Shipments in May and June averaged several tens of thousands of units. Arima said most growth will fall in July when it starts to deliver complete-unit computers and increase output capacity.
Arima said the second half of the year should see decent growth, citing signs of tightening parts supply, client order forecasts and a general recovery of the economic climate worldwide. Its shipment target of 1.84 million units, however, is regarded as conservative compared with the two million units forecast by some analysts.
May shipments at Arima may remain flat compared to April as clients have held off on purchases awaiting the May 26 price cuts on Intel microprocessors, the company said. Growth will become more visible in June as two new models from Compaq start shipping.
Article translated by Chou Hua-hsin and edited by Richard So
