China to overtake Taiwan in notebook PC manufacturing

China is projected to replace Taiwan as the world's largest notebook PC production base by the end of this year, according to a report published by IMS Research. According to IMS, notebook PC production in China has grown hugely over the last 12 to 18 months with most of the major foreign notebook PC makers either completing or starting the relocation of their production plants to China.
"The estimated output from those foreign-owned plants in China could reach 20 million units in 2003. Assuming the worldwide notebook PC market reaches 36 million units in 2003, this means that China will produce more than 50 percent of the total worldwide volume this year," said Ann Bird, the China market analyst at IMS. "The foreign-owned notebook PC plants in China are mainly set up by Taiwan."

The market research firm says that despite the relocation of production to China and the huge growth in production volumes, there is still no strong intention of relocating notebook PC R&D operations to China, at least for now. "It is predicted that some basic design work for notebook PCs will move to mainland China in the short term, but leading-edge design and overall control will remain in the company headquarters, most of which are in Taiwan," added Bird.