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HTC Sells Taoyuan Factory to Inventec

By Vincent Wang
Published: Dec 30,2015

TAIPEI, Taiwan — HTC said on Tuesday it is to sell a plot of land and a building TY5 in Taoyuan to Inventec for NT$6.06 billion (US$183.46 million) as part of its efforts to lower operational costs and boost efficiency. The company said the production facilities and its employees would be transferred to HTC’s three other properties in Taoyuan to centralize its production facilities.

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On August 13, due to being in deficit for two consecutive seasons, HTC announced the implementation of the HTC Era Program. Therefore, the company will reduce operating costs by 35 percent and is expecting to scale down 15 percent employees worldwide.

On the other hand, the bid shows Inventec is responding with the future big data, cloud and IoT markets. In other words, the demand is too strong to get new plant.

As a matter of fact, Inventec has signed an investment contract with Liangjiang’s Northern New District, China on Oct 19, which will launch the district’s first big data research center that aims at serving as a cloud service platform to help Inventec realize its strategic transformation.

Nevertheless, Inventec’s development plan reveals that the company will launch five data centers in five cities, including Chongqing and Shanghai by 2017.

In addition, HTC lately has new OEM/ODM partners in assembling its mid-tier and entry-level smartphones including Compal Electronics Inc., Longcheer and Wingtech. Besides, high hopes pinned on the company’s VR device Vive, which will be officially launched on April 2016.

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