Site:

GVC Corporation
14/F, No. 76, Sec. 2, Tun Hwa S. Rd., Taipei, Taiwan, ROC
Tel: 886-2-755-2226; Fax: 886-2-755-2513; e-mail: T.G.wang@mailx.gvc.com.tw

Participants:

T. G. Wang, Vice President
Nelson Wang, Senior Vice President, Computer Business Area
Philip Liu, Manager, Sales and Marketing Department, Computer Business Unit

Mission and strategy

• GVC is dedicated to the integration of computers and communications.
• Primary products include modems (25% world market share), monitors, PCs and notebook computers.
• GVC is committed to becoming its customer's most reliable partner. The company's motto is "The customer's wish is our command." and "Make the impossible, possible."
• Strategy is based on speed of response, quality, cost and service, and "ready to go" products (ODM).
• GVC bases its corporate culture on the 5 "Es": electronics, evolution, education, enjoyment & eternity.

Key elements of presentation

• Revenues were $770 million in 1995; up from $110 in 1992; and estimated at $1.2 billion for 1996.
• 95% of GVC's sales are contract manufacturing for top ten (tier 1) brands like IBM, Compaq, Acer, AST and Packard Bell.
• Shorter product life cycles have led to increased ODM sales (60%) of "ready-to-go" products. The remaining 40% of contract sales are OEM.
• GVC sells bare bones motherboards and ODM motherboards. Advanced technology development is done in the United States, low-cost manufacturing of motherboards (two-thirds of GVC output) in China and, beginning in 1996, the Philippines using Fuji and U.S. equipment (a total of five factories). Expansion is expected in Ireland and the United States.

Key elements of tour

• GVC has 18 assembly lines with 8 at the factory visited. Fuji lines and software make setup of lines easy. Assembly is conducted in a class 10,000 cleanroom.
• GVC uses long lines for SMT: 2 high-speed chip shooters with one flexible chip placement machine to obtain 1.5 times capacity of short lines. Line includes MPM stencil printer, Fuji CPVI chip shooters, IP 3 placement machines, and Furukawa reflow (IR-nitrogen system) ovens.
• 100% ICT on Genrad test yields 97% on 5-month-old board. Typical board life is six months. Quotes take three months. Line optimization takes one month to 98% yields.
• Wave soldering uses active flux followed by DI water rinse for board cleaning.
• Boards get 100% 8-hour static test at 55(C, the 1% gets 72-hour reliability stress test ESS -5(C to 40(C at end.
• Through-hole components were being manually inserted. Board assembly done on moving conveyor system.
• Production was 150,000 per month of 10 desktop models at the time of the WTEC visit.
• 25% of factory workers are Filipinos who can stay only two years.

Core competencies

• GVC produces BGA and TCP components in notebook assembly.
• GVC has strong relationships with Japanese component suppliers.
• Product design is key strength for ODM, and low-cost, high-volume manufacturing with flexible Fuji production systems is key to meeting customer needs.

Conclusions

• GVC enjoys a growing strength with large global customers by providing ODM products.
• GVC's management attitude is you can't compete if you work less than 12 hours per day. Fast response and meeting customer deadlines will keep customers loyal.