Quanta Computer has announced it will build a new production base in Chongqing, in addition to its two existing plants located in Songjiang and Changshu, China, according to a filing with the Taiwan Stock Exchange (TSE).

Quanta pointed out that its two existing plants in China are already capable of handling its targeted shipment goal of 50 million notebooks for 2010, and so it is not in a rush to get the new plant up and running.

Quanta wants to establish the Chongqing plant in order to better serve its client, Hewlett-Packard (HP). The company will face transport obstacles at the Chongqing plant in the short term as the shipments around the region are currently limited to by air, however, the Chongqing local government is schedule to finish building a railroad which will connect the region directly to Europe in 2012.

Most of Quanta's upstream component makers reacted conservatively to the announcement, saying they will not make any moves until Quanta is clear in its actions for the new plant

By: DocMemory
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