Quanta Computer’s plastic chassis manufacturing subsidiary has recently started reducing its production capacity in response to declining notebook shipments, according to Quanta Computer.
Because the notebook industry has experienced many changes in the past few years, Quanta is re-evaluating its vertical integration strategies and making adjustments in order to keep up with the differences.
The subsidiary used to supply up to 60-70% of Quanta’s plastic notebook chassis demand, but has been seeing related demand declining in the past few years. The market is even rumored that the company may sell all its equipment to outside chassis makers and outsource related production, but Quanta refuted such a claim.
In additional news, with several of China’s provincial governments starting to become aware of environmental issues, they have established policies to demand chassis production lines to adopt water-based materials for paint instead of oil-based materials. So plastic chassis makers have seen their production costs rising as they need to add extra processes in orders to keep the paint on chassis.
To avoid the issue, many chassis makers have started investing in new plants in inland provinces.