How deeply a brand name manufacturer gets involved in the process varies. IBM, McCarron said, typically works tightly with its subcontractors, overseeing product specifications, technical support and quality control. David Nichols, a segment marketing manager at IBM, confirmed that Quanta will manufacture IBM's Transmeta notebook being shown off at PC Expo, but did not indicate how much of the design work or engineering Quanta performed. Other companies take a more liberal attitude. It's like, 'Here's a check.
Costs also play a role.
Historically, labor rates have been lower in Asia than the United States. Although Taiwan has been a huge center for manufacturing, rising labor costs are encouraging companies to open plants in mainland China. Although Quanta is unknown to most U.S. consumers, the company's products, under the cover of other brands, are quite popular here. The company manufactures notebooks for IBM, Dell, Apple, Hewlett-Packard and Gateway, according to statistics from Tsan. Approximately 49 percent of the global notebook output came out of Taiwan in 1999.