Fountain Valley memory module maker Kingston Technology Co. on Friday announced the formation of a joint venture with China Great Wall Computer Shenzhen Co., China’s largest PC manufacturer and distributor.
The joint unit, which will be called Kingston Technology Electronics Co., will be based in a 50,000-square-foot plant in Shanghai’s Pudong “Silicon Harbor” area.
Kingston will own 80% of the venture while Great Wall will own 20%. Great Wall will provide its expertise in local distribution and logistics, as well as Chinese government regulations.
The joint venture will supply U.S. companies with memory modules to satisfy the Chinese government’s condition that computers manufactured in China have more than half of their components made in the country.
Wai Szeto, vice president of strategic business development of Kingston’s U.S. operations, will head the new joint venture.
“We see tremendous opportunities in China,” Szeto said. “Our sales there last year grew 220%.”
China makes up 40% of the Asian-Pacific PC market according to Stamford, Conn., analysis firm Gartner Group.
Meanwhile, Industry Week magazine last week named Kingston one of the world’s five “best manufacturing companies,” alongside Toyota Motor Corp. and Nestle SA.
