Skip to main content
SpringerLink
Log in

Locational Movement of PC Manufacturing Firms in East Asia

  • Chapter
  • First Online:
Locational Analysis of Firms’ Activities from a Strategic Perspective

  • 351 Accesses

Abstract

It is difficult for inland region to attack foreign investment because of the poor infrastructure and location condition. Chongqing, the inland region of China, succeeds in attacking Taiwanese PC companies and became the notebook PC production base of China in a short time. Taiwanese PC company is the main notebook PC producer in the world because of the competitiveness of cost and shipping speed. To maintain the competitiveness of cost and shipping speed, Taiwanese notebook PC companies relocated to the coastal area of China (Yangtze river delta) in 2000 from Taiwan and then relocated to inland region of China (Chongqing) in 2010. The purpose of this chapter is to consider the changing location of Taiwanese PC companies in China and its factors. The difference of twice relocation is that the latter case is led by demand provided by Chongqing government. That is Chongqing government earned order from PC brand company instead of Taiwanese notebook PC companies and provided the order to them. Besides that, Chongqing government developed transport infrastructure and became a new transport hub between China and Europe. In this way, because of the provided demand and potential of export convenience, Taiwanese notebook companies accumulated to the inland region China, Chongqing.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 39.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 54.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 54.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Notes

  1. 1.

    Kawakami (2012) p. 147.

  2. 2.

    Chengdu is provincial capital of Sichuan, and it is the only investment area in Sichuan.

  3. 3.

    The date is the total amount of notebook PC and tablet PC. PC produced in Chengdu is almost tablet PCs.

  4. 4.

    Yang (2000) p. 120.

  5. 5.

    See Yang (2001).

  6. 6.

    Zhuang (2004) p. 204.

  7. 7.

    Kika (2006) p. 171.

  8. 8.

    Zhu (2003) p. 19.

  9. 9.

    For example, Dell requested Taiwanese ODMs to relocate to China for mass production as part of low-price strategy.

  10. 10.

    Seki (2005) p.100.

  11. 11.

    JETRO (2011) p. 255.

  12. 12.

    Pegatron is an independent company from the manufacturing department of PC brand company ASUS.

  13. 13.

    There are statements that “Put more emphasis on reducing production costs” (2009) and “Reduce production and transportation costs to the utmost” (2010) in Annual Report of Quanta.

  14. 14.

    In this paper, we focus on location of Taiwanese in Chongqing for the reason that most of the Taiwanese ODMs located in Chongqing and Chongqing is the backward region compared to Chengdu.

  15. 15.

    Quanta sells to HP, Lenovo, Acer, Dell. Compal sells to Acer, Dell and Lenovo. Wistron sells to Acer and Lenovo. Pegatron sells to ASUS and Acer.

  16. 16.

    World Economic Outlook Data bases http://www.imf.org/external/ns/cs.aspx?id=28.

  17. 17.

    See Kin (2010).

  18. 18.

    Deng et al. (2014) did a field study of human resources of PC manufacturing in Chongqing in detail.

  19. 19.

    See Chongqing Government (2009).

References

  • Asamoto, T. 2011. Economic development of Taiwan: Formation process of catch-up type high-tech industry. Tokyo: Keiso Shobo.

    Google Scholar 

  • Chongqing Government. 2009. National logistics industry coordination and promotion plan. Government Document of Chongqing, No. 108.

    Google Scholar 

  • Chongqing Government. 2011. The 12th 5-year plan for domestic economy and society development of Chongqing. Government Document of Chongqing, No. 108.

    Google Scholar 

  • Deng, Z., X. Liang, and K. Kang. 2014. On the talent demand and training strategy of notebook computer industry. China Information Management, 17 (6):105–105.

    Google Scholar 

  • He, Y. 2010. The policy of opening up markets was moved to inland: Development strategies and investment environment of Chongqing. JC Economic Journal 202: 30–33.

    Google Scholar 

  • JETRO. 2011. China data File. Tokyo: Japan External Trade Organization.

    Google Scholar 

  • Kin, J. 2010. New development of Chongqing the engine of China Western Development Policy (China Research Report, No. 136). Tokyo: Fujitsu Research Institute.

    Google Scholar 

  • Kawakami, M. 1998. Inter-company disintegration and development of industry: Case of Taiwanese personal computer industry. Asian economy 39 (2): 2–28.

    Google Scholar 

  • Kawakami, M. 2012. Compressed industrial development: Growth mechanism of Taiwan notebook computer companies. Nagoya University Press.

    Google Scholar 

  • Kika, K. 2006. Multi-Level Economic Integration in East Asia: Cross-border production networks and industrial agglomeration in China. Bulletin of Tokai University 37: 161–180.

    Google Scholar 

  • Seki, M. 2005. Integration of Taiwan IT industry of Yangtze River Delta in China. Tokyo: Shinhyoron.

    Google Scholar 

  • Sun, Y. and Y. Taniguchi. 2015. Economic vitalization strategy of Chongqing, China. In Firm’s location selections and regional policy in the global economy, ed. Ishikawa. T, 247–266. Japan: Springer.

    Google Scholar 

  • Wang, Y., J. Luo, and X. Tong. 2003. Comparative analysis of Taiwanese PC industry in Dongguan and Suzhou. Study Report of China Geological University 3 (2): 6–10.

    Google Scholar 

  • Xia, W., G. Jin, and S. Han. 2014. SWOT analysis of countermeasures in development of Chongqing-Xinjiang-Europe International Railway Logistics Line. Logistics Technology 33 (1): 1–4.

    Google Scholar 

  • Yang, Y. 2000. The competitive advantage of personal computer industry in Taiwan. Rokkondai Research Papers 47 (1): 111–127. Kobe University.

    Google Scholar 

  • Yang, Y. 2001. Industrial cluster of disintegration network in Taiwanese PC corporation. Rokkondai Research Papers 48 (2): 55–71. Kobe University.

    Google Scholar 

  • Zhu, Y. 2003. Development of Taiwan IT industry in China: development of investment and local production and impact on the world (Chinese Research Report, No. 156). Tokyo: Fujitsu Research Institute.

    Google Scholar 

  • Zhuang, X. 2004. Management strategy of Taiwan IT industry: case of Acer. Tokyo: Soseisya.

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Institute of Economic Research, Chuo University, Hachioji, Tokyo, Japan

    Yanwei Sun

Authors
  1. Yanwei Sun
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Yanwei Sun .

Editor information

Editors and Affiliations

  1. Institute of Economic Research, Chuo University, Hachioji, Tokyo, Japan

    Toshiharu Ishikawa

Rights and permissions

Reprints and permissions

Copyright information

© 2018 Springer Nature Singapore Pte Ltd.

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Sun, Y. (2018). Locational Movement of PC Manufacturing Firms in East Asia. In: Ishikawa, T. (eds) Locational Analysis of Firms’ Activities from a Strategic Perspective. Springer, Singapore. https://doi.org/10.1007/978-981-13-1684-5_4

Download citation

Publish with us

Policies and ethics

Search

Navigation