Compal, Ju Teng Jointly Expanding Output of Metal PC Housings

Taipei, Oct. 14, 2011 (CENS)--In light of increasing demand for metal PC housings, Compal Electronics Inc. and Ju Teng International Holdings Ltd. have moved to expand output of the PC components at their joint venture sited in China, Jubao Precision Machining (Jiangsu) Co., triggering more competition in the segment.

The growing popularity of tablet PCs and Ultrabook laptops has fueled global demand for metal PC housings as a result, which has motivated players in the field to step up output expansion.

At present, Catcher Technology Co., Ltd. and Foxconn Technology Co., Ltd. are the two biggest suppliers of metal PC housings in terms of output, both of which have more than 10,000 sets of CNC (computer numerically controlled) machinery at their factories. Reacting to growing demand, the two companies have stepped up capacity expansion.

Coincidentally, Pegatron Corp., an electronic manufacturer, has also announced procurements of new production machinery for its reinvested companies of metal PC housings in China, disclosing its determination to secure supply of the parts.

Not to lag behind its Taiwanese counterparts, Compal has invested an additional NT$1.106 billion in Jubao, with some of the amount to be used for buying new CNC machines, paving the way for the firm to scramble for contract orders for metal-housed PCs. The investment project makes practical senses, as Compal has just garnered a big order from Dell for 12-13 million notebook PCs for sale in 2012, with most of which to be housed with metal. In short, the company will need more supply of metal PC cases next year, not to mention that planned production of tablet PCs and Ultrabook laptops will also consume a large number of the PC components.

Allegedly, with Compal's investment, Jubao will bring the number of CNC machinery employed at its factories to 2,000 in the first quarter of next year from the current's 600, though Ju Teng has yet to confirm the figure and emphasized that the exact number will depend on the real-life market situations.

However, industry insiders pointed out that Compal and Ju Teng's capacity expansion project may be obstructed, as Apple Inc. has reportedly ordered all CNC machines from Fanuc Corp., one of the world's suppliers of this kind, for next year.