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{{Short description|South Korean computer manufacturer}}
{{Use American English|date=December 2022}}
{{Use mdy dates|date=December 2022}}
{{Infobox company
| name=TriGem Computer Co., Ltd.
| logo=TriGem logo.svg
| native_name=삼보컴퓨터
| industry={{ubl|Computer|Electronics|Telecommunication}}
| founded={{start date and age|1980|7|2|df=y}} in [[Seoul]], [[South Korea]]
| founder=Lee Yong-tae
| defunct={{end date and age|2010}}
| fate=See [[#Receivership|§ Receivership]]
| products={{hlist|Computers|laptops}}
| divisions={{hlist|Averatec|TriGem Corporation|[[eMachines]] (1998–2004, joint venture)|[[Thrunet|Korea Thrunet]] (1999–2005)}}
}}
'''TriGem Computer Co., Ltd.''' ({{Korean|hangul=삼보컴퓨터|rr=Sambo Computer}}, abbreviated '''TG''', also known as '''TGSambo'''), was a South Korean [[personal computer]] manufacturer and technology company. Established in 1980, TriGem was the first Korean company dedicated to manufacturing computer systems.<ref name=Sakowski1990 /> It delivered Korea's first [[microcomputer]] in 1981 and the first Korean [[IBM PC compatible]]s in 1984.<ref name=international /> From that point until its breakup in 2010,<ref name=restructuring /> it alternated between the first- and second-largest computer manufacturer in South Korea, competing with [[Samsung Electronics]].<ref name=international>{{cite book | last=Campbell-Kelly | first=Martin | author-link=Martin Campbell-Kelly | author2=Daniel D. Garcia-Swartz | date=2015 | url=https://books.google.com/books?id=K7_FCQAAQBAJ&q=trigem | title=From Mainframes to Smartphones: A History of the International Computer Industry | publisher=Harvard University Press | page=144 | isbn=9780674286559 | via=Google Books}}</ref>
==History==
===Foundation (1980–1997)===
TriGem Computer was founded in 1980 by Lee Yong-tae with [[South Korean won|₩]]10,000,000 in start-up capital.<ref name=restructuring>{{cite web | last=Jeong-hoon | first=Ahn | author2=Lee Gyung-jin | date=October 29, 2015 | url=https://pulsenews.co.kr/view.php?year=2015&no=1034014 | title=Korea's TG Computer sets example in corporate restructuring | work=Pulse | publisher=Maekyung Media Group | archiveurl=https://archive.today/20221201192028/https://pulsenews.co.kr/view.php?year=2015&no=1034014 | archivedate=December 1, 2022}}</ref> TriGem was the first Korean company dedicated to manufacturing computer systems,<ref name=Sakowski1990>{{cite journal | last=Sakowski | first=Nat | date=September 9, 1990 | url=https://link.gale.com/apps/doc/A8855496/GPS?sid=wikipedia | title=TriGem, aiming to become an Asian Compaq, begins producing its own PC line | journal=Marketing Computers | publisher=The Nielsen Company | volume=10 | issue=9 | page=38 | via=Gale}}</ref> bucking from the trend of established ''[[chaebol]]'' conglomerates such as [[Hyundai Group|Hyundai]], [[LG Corporation|Lucky-Goldstar (LG)]], and [[Daewoo]], who had opened divisions to manufacture electronic components that go into computers (namely [[Dynamic random-access memory|DRAM]]) but who were reluctant about fully entering the burgeoning global [[microcomputer]] market. In 1981, TriGem delivered Korea's first microcomputer, and in 1984, they developed the country's first [[IBM PC compatible|IBM PC–compatible]] personal computer.<ref name=international /> In 1982, TriGem forged a partnership with [[Epson|Seiko Epson]] of Japan, committing to build computer peripherals such as [[Printer (computing)|printer]]s for the latter on an [[Original equipment manufacturer|OEM]] basis. By 1990, TriGem cornered [[dot matrix printer]] production in Korea, with an 80-percent market share.<ref name=Sakowski1990 /> The company began manufacturing Epson's [[Epson Equity|Equity]] line of personal computers in 1987, after Epson had purchased a 20&nbsp;percent stake in TriGem.<ref>{{cite book | last=Li | first=Bing | date=1991 | url=https://books.google.com/books?id=_aa1AAAAIAAJ | title=Factor-matching as the Key to Global Competition: The Case of Computer Firms in Korea and Taiwan | publisher=George Washington University | format=Doctorate thesis | via=Google Books}}</ref> By 1990, TriGem produced close to 500,000 computers annually; from 1987 to 1990, TriGem manufactured 300,000 computers for Epson.<ref name=Fisher1990>{{cite journal | last=Fisher | first=Susan E. | date=August 6, 1990 | url=https://link.gale.com/apps/doc/A8717044/GPS?sid=wikipedia | title=TriGem plots distribution strategy for U.S. market | journal=PC Week | publisher=Ziff-Davis | volume=7 | issue=31 | page=131 | via=Gale}}</ref>
TriGem's partnership with Epson winded down in the turn of the decade, after Epson announced that they would ramp up production of its computers at the company's manufacturing plant in [[Portland, Oregon]]. In 1989, TriGem Computer opened a subsidiary in the United States, amid plans to market computers under their own name in the country. Setting out to innovate in the field of personal computing, the company redirected eight percent of their gross sales into the [[research and development]] end of this subsidiary. The company planned a line of PC-compatible desktop computers, [[Laptop|notebooks]], and [[workstation]]s based on the [[Extended Industry Standard Architecture|EISA]] and [[Micro Channel architecture|Micro Channel]] [[Bus (computing)|buses]].<ref name=Fisher1990 /> TriGem also manufactured a [[SPARC]]-based laptop, OEMed for RDI Inc. of [[San Diego]]. This laptop, named the Brite Lite, was capable of running [[Unix]], [[DOS]], and [[Macintosh]] applications.<ref>{{cite journal | last=Marshall | first=Martin | date=November 12, 1990 | url=https://books.google.com/books?id=tDwEAAAAMBAJ&pg=PA8 | title=Sparc Laptop Will Run Unix, Mac, DOS | journal=InfoWorld | publisher=IDG Publications | volume=12 | issue=46 | page=8 | via=Google Books}}</ref> Also in 1990, TriGem entered an OEM relationship with [[CMS Enhancements]] of [[Irvine, California]], to manufacture computers under the CMS brand. This proved near-fatal for CMS after a price war in 1992 pulled them out of the market, with hardly any of these computers being sold.<ref name=Takahashi1992>{{cite journal | last=Takahashi | first=Dean | date=October 4, 1992 | url=https://www.latimes.com/archives/la-xpm-1992-10-04-fi-995-story.html | title=CMS Enhancements Struggles to Recover From Series of Costly Blunders | journal=Los Angeles Times | page=3 | archiveurl=https://web.archive.org/web/20220520062912/https://www.latimes.com/archives/la-xpm-1992-10-04-fi-995-story.html | archivedate=May 20, 2022}} {{ProQuest|281699826}}.</ref>
===Vertical growth (1997–2003)===
By the mid-1990s TriGem was the largest manufacturer of laptops in Korea. Sales of personal computers hit a slump in 1998, with TriGem producing 1.1&nbsp;million that year, down from 2&nbsp;million in 1997. With a looming bankruptcy amid $600&nbsp;million in losses, TriGem turned to the creation of other ventures in order to recoup profits.<ref name=Mi-Young2000 />
The first and largest was [[eMachines]], a maker of sub-$1000 personal computers for the American market.<ref name=Mi-Young2000>{{cite journal | last=Mi-Young | first=Ahn | date=January 2000 | url=https://link.gale.com/apps/doc/A62681538/GPS?sid=wikipedia | title=From Rags to Riches | journal=Electronic Business Asia | publisher=Reed Business Information | volume=11 | issue=1 | page=50 | via=Gale}}</ref> Established in 1998, eMachines was a joint venture between TriGem, [[Korea Data Systems]],<ref name="fourth">{{Cite news|url=https://www.nytimes.com/1999/03/31/business/emachines-is-fourth-in-us-sales-of-pc-s.html|title=eMachines Is Fourth in U.S. Sales of PCs|date=March 31, 1999|work=The New York Times|last=Staff writer|archiveurl=https://web.archive.org/web/20211113033935/https://www.nytimes.com/1999/03/31/business/emachines-is-fourth-in-us-sales-of-pc-s.html|archivedate=November 13, 2021|page=C25}}</ref> and Japanese computer maker [[Sotec]].<ref name=Mi-Young2000 /> By early 1999, eMachines was the fourth-largest personal computer manufacturer in the United States.<ref name="fourth" /> Production of eMachines' computers was largely done at TriGem's factory in [[Ansan]], with concurrent production lines in Taiwan and Japan.<ref name=Mi-Young2000 />
TriGem's second largest venture in the late 1990s was [[Thrunet|Korea Thrunet]], a subsidiary that provided [[broadband Internet]] in Korea. It was the first Korean company listed on the [[Nasdaq]], in 1999.<ref>{{cite web | last=Shameen | first=Assif | date=November 20, 1999 | url=http://www.cnn.com/ASIANOW/asiaweek/business/9911/index.html | title=Thrunet Proves Asian Internet Valuations Are Haywire | work=Asiaweek | publisher=Time Inc. | archiveurl=https://web.archive.org/web/20221201201647/http://www.cnn.com/ASIANOW/asiaweek/business/9911/index.html | archivedate=December 1, 2022}}</ref> Stakeholders in Thrunet included [[Microsoft]] and the [[Korea Electric Power Corporation|KEPCO]], an [[electric utility]] company run by the state of South Korea.<ref>{{cite web | last=Staff writer | date=November 18, 1999 | url=https://techmonitor.ai/technology/koreas_thrunet_makes_successful_nasdaq_debut | title=Korea's Thrunet Makes Successful Nasdaq Debut | work=Computer Business Review | publisher=New Statesman Media Group | archiveurl=https://web.archive.org/web/20221201201114/https://techmonitor.ai/technology/koreas_thrunet_makes_successful_nasdaq_debut | archivedate=December 1, 2022}}</ref> Other TriGem ventures included Narae Mobile Telecom, a [[mobile carrier]] in Korea, and joint ventures with SoftBank Korea and [[Yahoo!]] to distribute the former two's software.<ref name=Mi-Young2000 />
TriGem's Ansan factory produced 5.4&nbsp;million laptops in 1999. [[Hewlett-Packard]] placed an order for 1&nbsp;million TriGem-built laptops in early 2000.<ref name=Mi-Young2000 />
====Averatec====
{{Infobox company
| name          = Averatec
| logo          = Averatec Logo.svg
| image         = Averatec-Netbook.jpg
| image_caption = An Averatec N1000 [[netbook]]
| type          = [[Subsidiary]] of TriGem
| foundation    = {{start date and age|2003}}
| location      = [[Santa Ana, California]], United States
| defunct       = {{end date and age|2012}}
}}
In 2003 TriGem launched {{visible anchor|Averatec}}, another American subsidiary established in [[Santa Ana, California]], that sold only laptops. Unlike the American TriGem Computer or eMachines, Averatec operated largely independently and did not contract TriGem for the manufacture of its laptops. During TriGem's time in [[receivership]] (see [[#Receivership|below]]), Averatec continued to design and deliver laptops to stores.<ref name=Chuang2005>{{cite journal | last=Chuang | first=Tamara | date=June 11, 2005 | url=https://www.proquest.com/docview/462149088/ | title=Santa Ana laptop maker Averatec downplays investor TriGem's bankruptcy | journal=The Orange County Register | page=1 | via=ProQuest}}</ref> {{As of|2012}}, Averatec is no longer in operation.
===Decline, receivership, and breakup (2003–2010){{anchor|Receivership}}===
In 2003, Thrunet fell into receivership amid sharp drops in revenue.<ref name=restructuring /> It was eventually purchased by competitor [[Hanaro Telecom]] in March 2005 for ₩471.4&nbsp;billion (US$460&nbsp;million).<ref>{{cite web|title=Thrunet takeover to stabilize Korean broadband market by Hanaro Telecom|publisher=Telecom Asia|date=March 1, 2005|author=Galbraith, Michael|url=https://www.highbeam.com/doc/1G1-131362584.html|archive-url=https://web.archive.org/web/20160503112327/https://www.highbeam.com/doc/1G1-131362584.html|url-status=dead|archive-date=May 3, 2016}}</ref> TriGem's computer business suffered accordingly in the early 2000s. Although it trailed close behind Samsung and LG, margins shrank as it vied for the bottom-end of the ever-cheapening personal computer market of the early 2000s.<ref name=restructuring /> American computer maker [[Gateway, Inc.]], purchased eMachines in 2004 for an estimated $289.5&nbsp;million: $30&nbsp;million in cash and 50&nbsp;million in shares of Gateway stock.<ref>{{cite web | last=Fried | first=Ina | date=March 11, 2004 | url=https://www.cnet.com/tech/computing/gateway-completes-emachines-buy/ | title=Gateway completes eMachines buy | work=CNET | publisher=CBS Interactive | archiveurl=https://web.archive.org/web/20210801142643/https://www.cnet.com/tech/computing/gateway-completes-emachines-buy/ | archivedate=August 1, 2021}}</ref>
In 2005, TriGem itself entered receivership after announcing bankruptcy.<ref name=Chuang2005 /> Although it had been the second-largest domestic computer behind Samsung to that point, its international shipments of personal computers had fallen rapidly, against a ten&nbsp;percent growth in global PC sales from 2004 to 2005,<ref>{{cite journal | last=Staff writer | date=May 19, 2005 | url=https://www.proquest.com/docview/315475266/ | title=TriGem Files for Court Receivership in Korea | journal=Asian Wall Street Journal | publisher=Dow Jones & Company | page=A2 | via=ProQuest}}</ref> due to strong competition from Chinese and Taiwanese computer vendors.<ref name=restructuring /> Also cited by insiders was a botched refocus as a consultant for the design of computer systems for outside companies ([[original design manufacturer|ODM]]), a segment in which they had failed to find many high-profile customers.<ref>{{cite web | last=Tong-hyung | first=Kim | date=May 19, 2005 | url=https://www.koreaherald.com/view.php?ud=20050519000040 | title=TriGem Computer files for bankruptcy | work=[[The Korea Herald]] | publisher=[[Herald Corporation]] | archiveurl=https://web.archive.org/web/20191216114840/https://www.koreaherald.com/view.php?ud=20050519000040 | archivedate=December 16, 2019}}</ref> In the interim, Averatec continued designing and selling laptops in the retail market.<ref name=Chuang2005 /> [[Lenovo|Lenovo Group]], the third-largest computer company in 2006, was rumored to be in talks to purchase TriGem amid auctions of its assets in 2006.<ref>{{cite journal | last=Staff writer | date=September 1, 2006 | url=https://link.gale.com/apps/doc/A150799358/GPS?sid=wikipedia | title=Lenovo Undecided on TriGem Acquisition | journal=eWeek | publisher=QuinStreet Enterprise | via=Gale}}</ref> Instead the venture capital company Celrun was named as its purchaser, relaunching the company in 2007.<ref name=restructuring /><ref name=Yoo-chul2008>{{cite web | last=Yoo-chul | first=Jim | date=April 24, 2008 | url=https://www.koreatimes.co.kr/www/tech/2022/12/129_23234.html | title=TriGem Eyes Re-Listing Next Year | work=[[The Korea Times]] | archiveurl=https://web.archive.org/web/20221201211447/https://www.koreatimes.co.kr/www/tech/2022/12/129_23234.html | archivedate=December 1, 2022}}</ref> Despite making some inroads with [[Staples Inc.|Staples]] to vend a variety of TriGem's products in 2008,<ref name=Yoo-chul2008 /> TriGem again collapsed in 2010, when Celrun itself filed for receivership, seeking protection from creditors. TriGem shortly after was broken up to separate profitable units from doomed ones. The second son Lee Yong-tae purchased most of the good assets and from them established TG Computer Inc.<ref name=restructuring />
{{clear}}
==References==
{{reflist|colwidth=30em}}
==External links==
{{Portal|Companies}}
*{{webarchive|url=https://web.archive.org/web/19961219125710/http://www.trigem.co.kr/|title=Official website|date=December 19, 1996}} (in {{ISO 639 name|ko}})
*{{webarchive|url=https://web.archive.org/web/19961219063126/http://www.trigem.com|title=Official website|date=December 19, 1996}} (in {{ISO 639 name|en}})
[[Category:South Korean companies established in 1980]]
[[Category:2010 disestablishments in South Korea]]
[[Category:Computer companies of South Korea]]
[[Category:Defunct manufacturing companies of South Korea]]
[[Category:Defunct computer hardware companies]]
[[Category:Defunct computer systems companies]]
[[Category:Electronics companies of South Korea]]
[[Category:Technology companies of South Korea]]