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Fri, 23.05.2003
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pte20030523028 Companies/Finance, Computer/Telecommunications
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Taiwanese IT suppliers delay investments
Plans for factories on Chinese mainland shelved

Taipei (pte028/23.05.2003/14:10) - Taiwanese IT network equipment suppliers are postponing investments due to the outbreak of SARS. According to Asian IT service DigiTimes, most ventures planned for the Chinese mainland have been postponed.

Abocom Systems http://www.abocom.com.tw has for the time being cancelled it s plans to set up production in Shaoxing in the province of Zhejiang. "The outbreak of the lung disease SARS has paralysed the entire local market and no one is in the mood to pursue business," said Abocom Systems president Eric Oh-Yang, commenting on his company's decision.

The Taiwanese producers of WLAN equipment have also become cautious due to SARS. GemTek Technology http://www.gemtek.com.tw , a Taiwanese WLAN equipment producer, will postpone production in its new factory in the Jiangsu province - a factory that was supposed to serve the local Chinese market and supply Mini-PC WLAN modules for international notebook producers.

CyberTAN Technology http://www.cybertantech.com has also announced it intends to delay establishing an R&D team in the Jiansu province. It will, however, go forward with the creation of a second production site in China. According to president Frank Jiang, by the third quarter this year about 70 per cent of CyberTAN's products will be manufactured on the mainland - compared to a current 20 per cent. (newsfox-special SARS)

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