IBM Opens Business Server R&D Facility in Taiwan

Taipei, March 25, 2011 (CENS)--International Business Machines (IBM) yesterday announced opening a research and development center in Taiwan to develop its Power Systems business servers in consideration of the island's geographical proximity to mainland China, where consumptions of business servers are growing briskly.

IBM Taiwan's general manager, Edward Yu, said that the facility will make most of Taiwan's soundly established computer supply chains and well trained engineers to develop the products.

Industry executives expected Wistron Corp., currently IBM's sole contract supplier of Power Systems servers in Taiwan, to become the primary beneficiary of the IBM's R&D operation.

Wistron Chairman and Chief Executive Simon Lin pointed out that he hoped his company to maintain close business ties with IBM over the next 10 years. However, IBM said it would invite other manufacturers to work with the R&D facility.

Yu pointed out that IBM has spent over US$3.2 billion on Power Systems projects over the past four years, accounting for around 13% of the company's total annual R&D spending. He added that the facility is IBM's another independent R&D center in Taiwan after setting up in 2004 its first overseas R&D facility on the island to develop X86-based servers.

Yu estimated Power Systems center would require IBM Taiwan to employ an additional 10% of high-end engineers, bringing the branch's total R&D staff to over 1,000 by the end of this year.