Compal shrugs off labor, parts shortages

Compal Electronics Inc (仁寶電腦), the world’s largest contract notebook maker, yesterday said component and labor shortages would not affect its target of shipping as many as 48 million portable computers this year.

“The downsides of component and labor shortages were already factored in for the whole-year target of our notebook shipments,” the company’s president Ray Chen (陳瑞聰) said.

Labor shortages across the supply chain in eastern China — where most of the world’s laptop computers are produced — are expected to be completely resolved by the middle of this month, Chen told an investor conference.

Compal’s facilities in Kunshan were short-staffed in January, when some staffers left early for the Lunar New Year holidays. But the manpower shortage was resolved late last month when workers returned and the company took in new staff, he said.

Its suppliers, which also faced labor shortages, are expected to be fully staffed by the middle of this month, he said.

Notebook makers are also grappling with a shortage of components, including memory chips, capacitors and panels.

“We will closely follow up on panel supply after Thursday’s earthquake,” Chen said. “Chi Mei Optoelectronics Corp [奇美電子] will lose three production days, which is quite significant.”

A magnitude 6.4 earthquake hit southern Taiwan early on Thursday morning, causing some shutdowns and staff evacuations for companies located in the southern science parks.

Chip and panel makers estimated their production would be delayed by at least one day as a result.

Shipments of Compal’s portable computers grew 49 percent year-on-year to 37.9 million units last year, unseating Quanta Computer Inc (廣達電腦) as the biggest maker of notebook computers.

Compal yesterday said it would maintain its forecast for notebook shipments of between 46 million units and 48 million units this year.

Quanta chairman Barry Lam (林百里) said at the company’s year-end dance-and-dinner party last month that the company aimed to increase laptop computer shipments by 40 percent this year, to 50 million.