Quanta to set up NB PC assembling plant in Vietnam

The Taiwan-based Quanta Computer Inc., plans to set up a new plant of assembling notebook PCs in Vietnam, according to company sources.

Quanta has already confirmed the news and noted that it will start the construction plan in early 2008, in light of growing orders for notebook PCs in the future. The new plant will be its second overseas base for assembling PCs, with the first one already sited in China's Songjiang.

A wave of investment in Vietnam has hit Taiwan's electronic sector recently, with Hon Hai Group planning to pour US$5 billion in constructing a large-sized technology park and Compal Electronics Inc., the world's second-largest contract supplier of notebook PCs, deciding to invest US$500 million in building an industrial park for assembling outsourced notebook PCs.

As Quanta commands the largest share of 34% in the global market for outsourced PCs, its move to build its plant in Vietnam is expected to drive Taiwan's electronic suppliers to broaden their operation deployment to Southeast Asia from currently southern China.

At the moment, Quanta operates two large-sized manufacturing centers in China's Songjiang and Changshu. The Songjiang plant specializes in contract production of notebook PCs and servers, while the Changshu plant in production of consumer electronics on an EMS (electronics manufacturing service) basis. The Changshu plant was activated at the end of 2007, already helping Quanta to achieve diversification in its production lines.

In fact, Quanta already rebuilt its original plant of notebook PCs in Shanghai, which has been operational and attained maximum capacity of between one million and 1.5 million units a month. However, Quanta still plans to build its second production center in Vietnam.

Demand for notebook PCs has quickly increased by an average growth of 30% over the past years all around the world. In 2007, global sales of notebook PCs already exceeded 100 million units.

Quanta shipped 28.7 million notebook PCs for the first eleven months of 2007, up 67% from a year earlier, and is expected to attain shipment of 30 million units for entire the year. C.C. Liang, president of Quanta, projected conservatively that the company's notebook PC shipment will amount to 36 million units for 2008, up 20% from 2007.

source & copyright: CENS