São Paulo, Brazil, 08 Aug – MSI Computer of Taiwan plans to build a factory in Brazil, its first outside Asia, the company announced Monday.
The decision by the Chinese group, one of the world’s four biggest computer part manufacturers, was made after the Brazilian government granted fiscal incentives that will lower taxes and production costs by about 25 percent.
“This will make a number of business projects feasible,” the company’s director in Brazil, Frank Lin, told the Valor Económico newspaper.
Since last November and in association with Brazilian partners MSI has produced nearly 100,000 mother boards per month. The motherboard is the key component connecting all parts of a computer.
The factory should be completely built within two years, though plans call for production to begin earlier, by December 2007, Lin said.
The total production of the Chinese group, including the new factory and the local partners, should double to 200,000 motherboards per month, corresponding to one third of the Brazilian market for that component.
The new Brazilian factory will also produce components for graphic boards and wireless communication equipment.
The group maintains comprehensive agreements with the world’s top computer makers and has signed agreements in Brazil to distribute its products via three major local networks.
Those agreements will enable the group to offer Brazilian consumers technical assistance for its products.
The company headquarters is located in Taiwan. It has three factories and a new product research and development center in mainland China, specifically in Shenzhen and Kunshan (Jiangsu).
The group, founded in August 1986, annually produceds about 21 million motherboards and 11 million graphic boards, with annual invoicing of US$2.4 billion. (macauhub)