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business with Automated Assembly of Singapore (AAS), purchasing
through hole PCA's. AAS did not, however, meet Compaq U.S.
quality expectations and was not responsive to Compaq U.S.
production demands. Accordingly, petitioner fired AAS in
February 1985. Compaq U.S. attempted a similar cost savings
effort in 1984 using Bolnar, an unrelated international
purchasing organization, but this business relationship was also
unsuccessful.
Based on these two unsuccessful attempts to access lower
material costs, Compaq U.S. opened Compaq Asia in Singapore in
1986. Compaq Asia was organized under the laws of Singapore and,
during all relevant years, was a wholly controlled subsidiary of
Compaq U.S. Compaq Asia was primarily a PCA subcontractor,
manufacturing all types of PCA's to Compaq U.S. specifications.
Compaq Asia shipped its first PCA's in 1987 and, overall, was
successful in achieving worldwide material cost savings for
Compaq U.S.
The Compaq Asia factory was substantially similar to Compaq
U.S. from the architecture of the plant to the makes and models
of the machines on the production floors. Specifically, Compaq
Asia used the same Fuji vision centering pick-and-place
equipment, GenRad test equipment, screen printers, and reflow
ovens used by Compaq U.S. In addition, Compaq Asia utilized many
of the same manufacturing processes used by Compaq U.S.,
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