TAIPEI — Leading ODM Compal Electronics reported second-quarter revenue of NT98.9 million, up 2% sequentially. Net income was up 25% to NT3.3 million.

Gross margins were flat, at 4.8%.

The company said it would invest $30 million in a notebook PC plant in Vietnam, with mass production scheduled for the end of 2009. With more than 85% of notebooks PCs coming from the Shanghai area, Compal president Ray Chen said investment in Vietnam could spread risk for its customers.

The company expects its Vietnam plant will produce 300,000 to 500,000 notebooks monthly, reported DigiTimes, with costs around 3 to 5% lower compared to its Shanghai plant.

The ODM also plans to invest up to NT$ 1.5 billion in Wah Yuen Technology Holding in exchange for a 71% stake in Hong-Ya Technology and JuRong Hauye New Technology, a pair of magnesium alloy casing manufacturers. Compal says the investment will strengthen its vertical integration.

• Prev
• Next