Foxconn, Quanta - Taiwan CM and Foundries Fighting Low Margin Business

Quanta might cut component orders to Foxconn, says paper

from DIGITIMES: IT news from Asia

Due to Foxconn Electronics' (Hon Hai Precision Industry's) aggressive deployment into the notebook OEM market, including taking orders for Apple's MacBooks from Quanta Computer, Quanta is considering canceling part of its component orders to Foxconn, according to a Chinese-languageEconomy Daily News (EDN) report citing a report by JP Morgan.

Taiwan DRAM makers may have net profit margin of -72% in 2008

from DIGITIMES: IT news from Asia

Taiwan's major DRAM makers may see their overall net profit margin fall to -72% in 2008, with combined losses of NT$112.5 billion (US$3.42 billion), according to the Industrial Economics and Knowledge Center (IEK) of the Taiwan government-backed Industrial Technology Research Institute (ITRI). Domestic players' less price competitiveness and shrinking consumer demand worldwide have resulted in the worst downturn in Taiwan's DRAM industry.