Taiwan: Hitching A Ride On The Wireless Web

Taiwan's PC makers are morphing into cell-phone producers

If any Taiwan company knows how to thrive in a cutthroat business, it is Quanta Computer. Over the years, Taipei-based Quanta has grown into a $2.4 billion electronics power by building personal computers for Dell Computer Corp., Gateway Inc., and other brand-name giants. But this year, the incessant price-cutting has taken a toll. Quanta's profits were down 32% in the first quarter; its stock has slid by 10%. So Quanta is trying a new route: It's gearing up to become a major manufacturer of mobile telephones, which are on course to overtake PCs as the prime gateway to the Internet. "The future is in wireless," says Quanta Executive Vice-President Michael Wang. "And it all begins with the handset."

To continue reading this article you must be a Bloomberg Professional Service Subscriber.