To meet the possible substantial growth in shipments of NB PCs, Quanta will continually expand production capacity in Songjiang of China in 2010. Quanta will set aside NT$390 million, or US$12 million, to join the capital-increment project launched by Quanta International Holding, a major investor in the Songjiang expansion project.

C.C. Leung, vice chairman and president of Quanta, projected his company will see shipments hit a historic high of 50 million NB PCs in 2010, up 40% year-on-year. To ramp up its international competitiveness, the company will launch a vertical integration in parts and components production.

At present, Quanta has five production facilities with two land lots left for expansion in Songjiang alone. Its expansion project in Songjiang will be completed sometime in the third quarter of 2010.

An institutional investor predicted Quanta will see shipments grow between 15% and 20% in the fourth quarter of 2009 from the preceding quarter, and the shipments will grow over 40% year-on-year in 2010.

In addition to Quanta, others like Compal and Wistron also plan to set up new production sites in China. Compal said it would build a fifth plant in Kunshan of Jiangsu province and launch a second production base near the existing production base in Kunshan.

Wistron noted it has mapped out a concrete plan to set up a new manufacturing base in Taizhou of Jiangsu province. The proposed new plant will begin mass production sometime in 2010.