|Buyer||Taiwan Makers||(US$ millions)|
|Apple||Tatung, Acer, Inventa, Delta||$300-400|
|COMPAQ|| ADI, Philips, TECO, Logitec, Primax, Inventec,|
|DEC||Philips Taiwan, Lite-on, DEC Taiwan Elite||n.a.|
|Dell|| Lite-on, Royal, Inventa, GVC, Lung Hwa, FIC,|
|IBM||Sampo, Capertonic, GVC, Elite, Lung Hwa, SunMoon-Star, Delta, ASE||$450|
|Packard Bell||Tatung, GVC, BTC||$500|
|Source: Market Intelligence Center/Institute for the Information Industry (MIC/III). Data provided to authors.|
basis of low costs, high-quality engineering, speed, and responsiveness. As labor and other costs in Taiwan have risen during the 1980s, Taiwanese companies have begun moving lower-skill production offshore to Malaysia, Thailand, and China. Taiwan supplies PCs on an OEM basis to both the branded firms and clones all over the world to such an extent that it has been dubbed the "Krupps of the computer wars" referring to the legendary German company that supplied arms to all sides in World War I. The scope and scale of these Taiwanese firms can be seen in just a partial list of OEM arrangements between leading PC makers and Taiwanese suppliers (table 2-11).
Hong Kong serves as the link between the global production system and China. It is a conduit for investment and trade into and out of China, providing marketing, management, financial, and commercial services. In the past, it was also a major production platform for foreign multinationals and some domestic suppliers, but these have gone over the border since the late 1980s. Now Hong Kong's role is to provide value as an intermediary, rather than as a manufacturer.
What has emerged over the last fifteen years is a vast production system stretching throughout the Asia-Pacific region. Each focal country in Asia has established a unique place for itself based upon industry capabilities (technology leadership, commodity manufacturing, supply infrastructure, business hub); overall comparative advantage (large domestic market, low-cost labor and facilities, closeness to large market); and technology policy supporting industry or leveraging comparative advantage (table 2-12).
The PC revolution changed the entire computer industry because it changed the structure of the industry and traditional boundaries within the industry. Historically the computer industry had clearly defined boundaries that were