Manufacturing News

Quanta, Wistron to Receive More NB PC Orders From Sony Due to Japan's Quake

As Sony has shut down its notebook PC factories located in Japan's Fukushima and Miyagi Ken due to the devastating earthquake hitting northeastern Japan and thus will farm out production, two Taiwanese notebook PC makers, Quanta Computer Inc. and Wistron Corp., are expected to receive more contract orders from the Japanese client in the near future, according to industry insiders.

They mentioned that six of Sony's notebook PC manufacturing factories are situated in the two aforementioned areas, and have been forced to suspend production due to the massive earthquake.

So far, it has been almost impossible for Sony to resume production at these factories in a short time, partly because of Japanese government's electricity rationing following explosion of the Fukushima nuclear power plant, and partly because of damaged local transportation systems, though most manufacturing facilities remain undamaged. In other words, the Japanese firm will have to increase notebook PC outsourcing to Quanta and Wistron as a result.

In fact, Sony has increased procurement of notebook PCs from the two said Taiwanese suppliers since the Japanese yen started to appreciate last year. Surely, the firm's factory shutdowns will accelerate the outsourcing strategy to benefit its overseas subcontractors.

Wistron just reported net profits of NT$12.03 billion, including NT$3.101 billion earned in the fourth quarter, for 2010, up 31.7% from 2009, with full-year EPS (earnings per share) of NT6.15.

Quanta has yet to release its financial statement for 2010.

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