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Merger Rumors Arise in Taipei

Slow sales and cash flow spur cutbacks and layoffs
By: Sean Kalinich | Business, Financial & Legal News | Posted: Nov 17, 2008 12:22 pm

Straight off of the rumor mill comes the rumblings of mergers out of Old Taipei.


According to Digitimes, due to the economic troubles of the past few months many manufactures are having overstock problems. This has caused many to restructure and introduce inventory control measures at the Tier One level. In some Tier Two cases the thoughts of mergers have arisen as a method for survival


The gloomy news can be found here


Merger Rumors Arise in Taipei


First-tier makers Asustek Computer, Elitegroup Computer Systems (ECS), Gigabyte Technology and Micro-Star International (MSI) have already cut capacity and started inventory control measures.


Some second-tier makers are reportedly considering merging with other makers if performance in the next 3-6 months does not pick up. Some have also stopped production and are currently selling off inventory from the second and third quarters with no concrete schedule for restocking.


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