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Taiwanese OEMs lose out in Dell rejig

PC giant to claw back notebook manufacture

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Dell is to make more of its own notebook PCs and cut back on the amount of outsourcing going to its Taiwanese partners. Moving away from the general trend in the industry, Dell said notebook contract orders would see just 20 per cent growth in 2000, down on the 50 per cent average over the past two years. Its two main Taiwan contractors -- Quanta Computer and Compal Electronics -- are expected to be hit hardest. Dell previously accounted for 40 per cent of the two companies' shipments. The direct PC vendor bought an estimated $2 billion of goods from Taiwan this year. Dell's decision goes against the trend being followed by most manufacturers, which are generally increasing their outsourcing and follows the opening of additional notebook production lines at its plant in Austin, Texas. Part of the company's strategy is to increase its own manufacturing. Self-production accounted for around ten per cent of this year's manufacture. This number is expected to reach 40 per cent in 2000. ® Related story Fujitsu to cut DRAM production

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