Channel Register®

Original URL: http://www.channelregister.co.uk/2008/03/20/microsoft_hp_tech_centre_taiwan/

HP and Microsoft plan Taiwanese R&D centre

Going where the partners are

By Kelly Fiveash

Posted in IT Channel, 20th March 2008 12:28 GMT

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Microsoft and Hewlett-Packard have announced plans to set up a new product research and development centre in Taiwan, reports say.

Tech boffins at the R&D hub will work on advanced software and hardware. They’ll also brainstorm ways of improving technical support for Taiwan partners such as contract laptop manufacturer Quanta, reports Reuters today.

A lot of computer hardware kit used by the likes of HP, Dell and others derives from Taiwan, where the semiconductor industry is big business.

According to IT analyst firm Gartner [1], Taiwanese company Advanced Semiconductor Engineering remained the leading provider of assembly and test services last year, with revenue topping $3bn. So it’s hardly surprising to see the two tech giants setting up home in that country.

Microsoft global technology centre director John Knutsen, speaking at a news conference, reckoned that the two US firms would help advance the technology of their Taiwanese biz partners by landing a new R&D plant in that part of the world.

Both HP and Microsoft expect the new centre to net a tasty investment return, generating $83m worth of sales within half a decade, although neither firm revealed today how much cash was being pumped into creating the Taiwanese hub.

Earlier this week Microsoft and Intel shelled out $10m each to the University of California, Berkeley and the University of Illinois to fund research around advanced software programming techniques for PCs and mobile devices.®