The Taiwanese press is reporting that Compaq has signed a deal with 16 local companies to supply it with components and other PC parts.
Earlier this month, Compaq tightened the screw on its Taiwanese suppliers by asking them to drop their prices by 15 per cent.
The Compaq suppliers include Acer Semi, First International Computer, ASE, UMC, SiS, TSMC, Mitac and Winbond, the reports said.
As part of the deal, estimated to be worth over $7 billion over a period of one year, Compaq will help its suppliers with marketing and manufacturing.
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