TAIPEI -- Compal Electronics will raise wages at its plants in China as it tries to fend off inflation and a shortage of workers, the company says.

Chairman Hsu Sheng-hsiung said the world's largest contract laptop maker would increase wages by a "small amount."

The company will increase capacity with new plants inland, he said, but added, "Corporations must not relocate for the sake of wage concerns like nomads chasing new grasslands."

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