Following its clients Inventec, Foxconn Electronics (Hon Hai Precision Industry) and Quanta Computer, notebook battery maker Simplo Technology recently signed a contract with the government of Chongqing, China to invest US$90 million to establish a production base in the area.

The production base is expected to be completed in June 2011 and the company will start production in August. Annual capacity is scheduled to reach 20 million units by 2012. Production will mainly focus on the manufacturing and sales of notebook batteries and related components.

In addition to putting it closer to its notebook clients, Chongqing is also the largest automobile production base in China, meaning Simplo could also advance into the electric vehicle-battery segment, according to market watchers.

As a train route connecting Europe and Chongqing will start operating later in 2010, IT players will be able to save a significant amount of time shipping from the region, which market watchers believe is an attraction for the IT companies moving into the area.