Dell Computer Corp and Toshiba Corp will soon be placing large orders for notebook PCs with Taiwanese contract manufacturers, according to industry insiders quoted in the local media. Compal Electronics Inc, Acer Inc and Quanta Computer Inc are the three firms still in the running for the orders, each of which will be for more than a million notebooks, the reports claimed.

Compal is said to be the most likely to win the Toshiba order, which will be for sub-$1,500 computers, due to its low prices, extensive experience in cooperating with Japanese companies such as Sharp Corp and Fujitsu Ltd, integrated global logistics systems and – most importantly – adequate supplies of TFT-LCD panels. The reports say Dell Computer wants both notebooks and desktops, and so Acer and Quanta, which make both, have the inside track as Compal does not make desktop PCs.