TAIPEI Dec 24 Quanta Computer (2382.TW), the
world's largest contract laptop PC maker, will soon sign an
agreement to build a plant in western China, aiming to supply to
global PC leader HP (HPQ.N) from 2011, a source said on Thursday.
Quanta's smaller rival Inventec (2356.TW) will also sign a
similar agreement with Chongqing within the next two months, a
source close to the city government said, following months of
discussions with officials. [ID:nTP15623]
Quanta's factory in the western Chinese city of Chongqing
would begin production in the second half of 2011, with
preliminary testing of the site due to begin by the middle of
next year, the first source close to company officials said.
"Both companies will sign the agreement by about January next
year," said the first source, adding that both companies had yet
to decide on the total size of investment and production numbers.
Both sources declined to be identified because discussions
were ongoing and the news had not been made public.
Officials from Quanta and Inventec declined to comment.
HP said in October last year that it would set up a
manufacturing complex in Chongqing to make notebook and desktop
PCs for the Chinese market to diversify its production base in
the world's most populous nation.
Contract manufacturers and other suppliers frequently set up
manufacturing facilities in areas where their clients already
have large operations, streamlining logistics and supply chain
Many top PC brands, such as HP, Dell DELL.O and Acer
(2353.TW), typically carry out their own design work, and
outsource the labour-intensive production process to contract
manufacturers such as Quanta and Inventec.
(Reporting by Jennifer Yang and Kelvin Soh; Editing by Chris