Averatec

TriGem Computer Co., Ltd.

Company type	Private
Industry	Personal computers, technology
Founded	1980 (1980)
Founder	Lee Yong-tae
Defunct	2010 (2010)
Fate	Dissolved; assets acquired by TG Computer Inc.
Successor	TG Computer Inc.
Headquarters	South Korea , South Korea
Area served	South Korea, United States, international
Key people	Lee Yong-tae (founder)
Products	Personal computers, laptops, printers (OEM)

TriGem Computer Co., Ltd. (, commonly abbreviated as TG and also referred to as TGSambo), was a South Korean technology firm specializing in personal computers. Established in 1980, TriGem became the pioneering Korean company focused on computer system manufacturing. It introduced Korea's inaugural microcomputer in 1981 and followed with the nation's first IBM PC-compatible models in 1984. Up until its dissolution in 2010, TriGem alternated between holding the position of South Korea's largest and second-largest computer manufacturer, competing directly with Samsung Electronics.

Establishment and Early Years (1980–1997)

Lee Yong-tae founded TriGem in 1980 with initial capital of ₩10,000,000. The company entered a market predominantly controlled by large chaebol groups such as Hyundai, LG, and Daewoo, which were primarily invested in components like DRAM but showed reluctance to fully engage in the international microcomputer industry. In 1981, TriGem launched Korea’s first microcomputer and by 1984 had developed the country’s first IBM PC-compatible personal computer.

In 1982, TriGem formed a partnership with Japan’s Seiko Epson to produce computer peripherals such as printers under an OEM agreement. By 1990, TriGem commanded an 80% share of the domestic dot matrix printer market. Following Epson’s acquisition of a 20% stake in TriGem, the company began manufacturing Epson’s Equity PC series starting in 1987. By 1990, annual production reached nearly half a million computers, including approximately 300,000 units built for Epson from 1987 through 1990.

The alliance with Epson concluded when Epson transferred production to its facility in Portland, Oregon. In 1989, TriGem launched a U.S. subsidiary to sell computers under its own brand name and allocated eight percent of gross revenue to research and development focused on PC-compatible desktops, notebooks, and workstations utilizing EISA and Micro Channel technologies. Additionally, TriGem produced a SPARC-based laptop for RDI Inc. under OEM terms that supported Unix, DOS, and Macintosh software. In 1990, it began OEM manufacturing for CMS Enhancements; however, a severe price war in 1992 significantly weakened CMS’s market position.

Expansion and Diversification (1997–2003)

By the mid-1990s, TriGem had become the leading laptop manufacturer within Korea. Nonetheless, PC sales declined sharply in 1998, with production falling from two million units in 1997 to just 1.1 million units. Confronted with losses amounting to $600 million and the threat of bankruptcy, TriGem sought recovery through diversification into new business areas.

The most significant initiative was eMachines, established in 1998 as a joint venture among TriGem, Korea Data Systems, and Japanese company Sotec. Targeting the U.S. market with affordable PCs priced below $1000, eMachines rose to become the fourth-largest PC manufacturer in America by early 1999. Production was primarily based at TriGem’s Ansan facility, supplemented by manufacturing lines located in Taiwan and Japan.

Another key enterprise was Korea Thrunet, a broadband Internet service provider that became the first Korean firm to be listed on Nasdaq in 1999. Major investors included Microsoft and the government-owned Korea Electric Power Corporation (KEPCO). Additional ventures encompassed Narae Mobile Telecom—a Korean mobile operator—and collaborations with SoftBank Korea and Yahoo! aimed at software distribution.

In 1999 alone, TriGem’s Ansan plant produced 5.4 million laptops. Early in 2000, Hewlett-Packard placed an order for one million laptops from TriGem, highlighting the company’s significant manufacturing capabilities and broad market presence.

Averatec

Established in 2003, Averatec was an American offshoot of TriGem, headquartered in Santa Ana, California, dedicated solely to laptop computers. Unlike TriGem Computer or eMachines, Averatec functioned with considerable autonomy and did not rely on TriGem for manufacturing. Even during TriGem's receivership period (see below), Averatec continued its laptop design and supply operations for retail outlets. Eventually, Averatec discontinued its activities.

Decline, receivership, and breakup (2003–2010)

Thrunet entered receivership in 2003 following significant revenue losses and was subsequently acquired by rival Hanaro Telecom in March 2005 for ₩471.4 billion (approximately US$460 million). Similarly, TriGem’s computer division faced challenges; although it ranked third after Samsung and LG, its focus on budget PCs resulted in diminishing profit margins. In 2004, the American firm Gateway, Inc. purchased eMachines for around $289.5 million.

In 2005, TriGem filed for receivership after declaring bankruptcy, despite being South Korea’s second-largest domestic PC manufacturer behind Samsung. Its global PC shipments dropped markedly due to intense competition from Chinese and Taiwanese companies, even as worldwide PC sales increased by ten percent between 2004 and 2005. Efforts to transition into original design manufacturing (ODM) consulting did not attract major clients. During this period, Averatec sustained its retail laptop sales.

Speculation arose in 2006 about Lenovo Group potentially acquiring TriGem during asset auctions; however, venture capital entity Celrun acquired the company and revived it in 2007. TriGem secured distribution agreements with retailers such as Staples in 2008 but ultimately collapsed once more in 2010 when Celrun itself entered receivership. Following this, TriGem was dismantled to separate profitable segments from failing ones. Lee Yong-tae, the founder’s second son, purchased key assets and established TG Computer Inc.

External links

• Official website (archived December 19, 1996, Korean)
• Official website (archived December 19, 1996, English)