Compal Electronics will establish a production base in Chengdu of Sichuan Province, western China, with an initial annual production capacity of 10 million notebooks, according to a China-based Sichuan Daily report.

Compal president Ray Chen has signed with Chengdu government for the investment project, with chairman Simon Lin of Wistron and chairman Yang Yuanqing of Lenovo attending the signing ceremony, the report indicated. The base, with an annual capacity to be expanded to 20 million notebooks in 2013, will also produce all-in-one and tablet PCs, LCD TVs, LCD monitors, mobile devices and wireless networking devices.

In response, Compal senior vice president and spokesman Gary Lu confirmed the report but emphasized that this is just a framework agreement and details are subject to approval by the board of directors.

Also in response, Wistron indicated it is evaluating the feasibility of investment in western China but no results are available currently.