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Compaq fears for $7 billion if Taiwan and China fight

It would affect Capellas' bottom line, that's for sure

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Earlier this year, after dickering over prices, Compaq struck a deal with 16 Taiwanese firms worth an estimated $7 billion. (Story: Compaq strikes $7 billion Taiwan supply deal) The Houston-based outfit was keen to ensure it could knock around 15 per cent off its supply chain so it could compete with the Great Stan of Hardware (Dell). And now, in an interview with the Bloomberg wire, the head of Compaq's Greater Chinese Division has expressed unease over the continuing tension between Red China and Taiwan ROC. According to Bloomberg, Larry Fox, a VP of Compaq's unit, said: "If a war does happen, it will affect a lot of people". He explained that Compaq had bought many products from Taiwan and those businesses have subsidiaries on the mainland. Compaq also has subsidiaries there. He is hoping that common sense will prevail. So, too, are the 26 million folk who live on the island, of which very few want to be part of Red China. Taiwan was pretty much left to its own devices until the leaders and the rump of the Republic of China forces fled there after being trounced by Mao's People's Liberation Army (PLA). A number of other major manufacturers, including IBM, Dell, Toshiba, Sharp, Philips &c. &c would also be badly hurt, economically, by such a conflict. ®

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