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Monday, November 22, 2004
Philips to step up partnerships with Taiwan companies, will increase outsourcing

Royal Philips Electronics plans to increase its procurement of IT products from Taiwan and will also strengthen its partnerships with Taiwan companies to create new business opportunities.

Philips recently revamped its corporate strategy and will increase its outsourcing worldwide, which should lead to increased procurement from Taiwan, said Chuang, as quoted by the Chinese-language Commercial Times and the Economic Daily News (EDN).

Philips bought a total of US$15 billion worth of products from Taiwan last year, according to Chuang.

Philips will also step up its cooperation with Taiwan companies in fields such as wireless communications, digital TVs, electronics parts and components for automobiles, electronic medical devices and personal information products, said the papers.

Citing successful projects in cooperation with Accton Technology and BenQ, Chuang said that he believes there is ample room for Philips to establish more partnerships with Taiwan companies.

Revenues of Philips BenQ Digital Storage, an optical-storage-device joint venture between Philips and BenQ, are expected to reach US$600 million this year and increase 50% to US$900 million in 2005, said Chuang, as quoted by the papers.

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