Thu, May 15, 2014 - Page 14 News List

Quanta considers moving production out of China

Staff writer, with CNA

Increasing labor costs in China have left Quanta Computer Inc (廣達), the world’s top contract laptop and PC maker, considering moving its factories to other countries — including back home to Taiwan.

Quanta vice president C.C. Leung (梁次震) told reporters on Tuesday in a presentation on quarterly earnings that China’s minimum wages have increased by 13 to 15 percent annually over the past few years, faster than any other area around the world.

“Considering where to manufacture is a comprehensive issue because it involves not only one company, but also suppliers of various components. We need to consider the whole supply chain,” Leung said.

The Taiwanese company is seeking to move its Chinese factories to other countries, but will take its time first to overcome some difficulties such as staff recruitment, he said.

If Quanta wants to move its production bases back to Taiwan, for example, the company will need to consider how it will find enough employees in a society where college graduates seek white-collar jobs, he said.

A possible solution is to build modern factories that are more comfortable than the current ones, or to install automated facilities that can replace part of the required workforce, he said.

“Anything is possible, but we will not take any steps until the time is right,” Leung said.

Quanta currently has three major Chinese production bases in Shanghai, Changshu and Chongqing that manufacture a wide range of electronics including notebook computers, servers, cloud computing devices and automotive electronics.

This story has been viewed 1879 times.

Comments will be moderated. Keep comments relevant to the article. Remarks containing abusive and obscene language, personal attacks of any kind or promotion will be removed and the user banned. Final decision will be at the discretion of the Taipei Times.

TOP top