Kontron has announced plans to outsource up to 75 per cent of its embedded computer system manufacturing to Quanmax of Taiwan.

Quanmax is a joint venture between Quanta Computer and Kontron AG, a German-based company. Although Kontron expects to retrieve its franchises from Quanmax in 2009, the firm will continue outsourcing production to help reduce procurement costs.

Kontron, which employs over 2,300 workers worldwide, recently inagurated a sales and technical support services centre in Tawian. The company hopes to increase annual sales to $20 million by 2010 by targeting various sectors, such as industrial automation, communications, healthcare, entertainment and defence.

Faced with a declining PC notebook market, Quanta has also attempted to expand into different areas, including auto electronics, medical instruments and IPCs (industrial PCs).

The new outsourcing deal could help assuage concerns, albeit minimally, over Taiwan's beleagured technology sector. As IT Examiner previously reported, Taiwanese president Ma Ying-jeou recently attempted to downplay a serious drop in IT exports. The president emphasised that the country's high-tech industry would have the opportunity to "experience prosperity" in 2009, despite recording negative growth. However, Ma admitted that exports had declined as markets in the US, Europe and China contracted.

Nevertheless, the president reiterated that Taiwan's technology sector remained sound and would eventually recover with government assistance. X

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