Lenovo chief sends warning to Taiwan’s manufacturers
Staff Reporter 2014-03-05 13:32

Lenovo chairman Yang Yuanqing said on March 3 that he Taiwan’s manufacturing capability married to China’s brand names makes for a strong partnership, but sent a warning to Taiwan-based manufacturers that the mainland is catching up in this area.

“Taiwan is known for its manufacturing capability but China’s manufacturing has improved as well. Lenovo will continue to develop in this area for sure,” Yang said. “For Chinese and Taiwanese counterparts, I believe there will be more competition than cooperation in the future.”

Yang was approached on the sidelines of the annual meeting of the Chinese People’s Political Consultative Conference, of which he is a member.

While Lenovo is proud of being a world-leading Chinese brand, a large proportion of its products are manufactured and assembled by Taiwan-headquartered companies. Compal has been a long-term partner for Lenovo and the two companies launched a new subsidiary in Hefei in September 2011.

Commercial Times said Lenovo has been seeking to become the major shareholder in the company since the beginning of this year. Compal CEO Chen Jui-tsung said his company would sell its stake to Lenovo if Lenovo wants but it would be impossible for Lenovo to 100% manufacture its own products.

“There would be additional costs there if a company owns its own factories. It is not necessary a good thing for Lenovo,” Chen said.


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