Compaq to pull PC production from Mitac
PrintTurns to FIC instead
Posted in Business, 2nd July 2001 15:45 GMT
Hitachi IT Operations Analyzer: 30-day free trial.
Compaq will no longer outsource desktop PC production to Mitac, industry sources have claimed, but will instead contract Taiwan's FIC and Foxconn to build its desktops.
The deal with Mitac was set to be terminated this past Saturday, according to a DigiTimes report posted on Friday.
The move calls into question the future of Mitac's Californian assembly plant. The majority of the facility's output ends up in Compaq warehouses.
Mitac will continue to produce notebook and server systems for the Big Q. The company told DigiTimes that its California plant will not close, but will stay open to service the company's other customers. With Compaq taking most of the PCs the plant produces, Mitac must find new customers or face the prospect of scaling back the plant's workforce. With the PC market slowing down so much, it's hard to see Mitac having much luck with the former option.
Foxconn already produces basic systems for Compaq. FIC is expected to pick up where Mitac leaves off, shifting production to Taiwan and eventually perhaps Eastern Europe too. ®
Related Link
DigiTimes: Compaq terminates desktop orders to Mitac
Free whitepaper – Optimizing the data center for cost and efficiency
Analyst Keynote: The Register Agile Data Center Summit
Automating the Acquisition Process with Enterprise Level CRM
Market Primer: ERP Systems
The Register Agile Data Center Summit
Hosted CRM Can Be Your Secret Weapon to Success!
Dirty, dirty PCs: The X-rated picture guide
Top 500 supers - rise of the Linux quad-cores
Early adopters bloodied by Ubuntu's Karmic Koala
Sign up, sign up for The Register IT security newsletter