Asustek Computer has recently visited China and negotiated with the Chongqing government for investment and the company believes it should make an investment in the near future, but the plans will not be announced before the end of 2010, according to company spokesperson David Chang.

Although Pegatron Technology also received an invitation from the Chongqing government, the company pointed out that it will focus on filling up empty capacity at its plants in Shanghai and Suzhou, China for now and will evaluate its order status and clients' commitment to make a decision for extra investment in the future. The company will consider either Chongqing, Chengdu or Shandong for its next investment, the company added.

Pegatron also pointed out that since most notebook players are moving to western China for new investment, labor shortages could become a problem again.

However, the market watchers believe Pegatron should make a decision in the first quarter of 2011 and establish its plants in the second half of 2011.

The Chongqing government has recently established a industrial zone for notebook players to build their plants and players including Quanta Computer, Foxconn Electronics (Hon Hai Precision Industry), Inventec and Hewlett-Packard (HP) as well as component makers including Simplo Technology have all already moved into the zone.

Asustek currently is mainly outsourcing its notebook orders to Pegatron, Quanta and Compal Electronics and will halt its cooperation with Foxconn after its K series notebooks are shelved. Compal will start shipping notebooks to Asustek in January of 2011. In 2011, Pegatron will have 50% of Asustek's orders, Quanta 30-35%, Compal 10-15% and Foxconn below 5%.