Executives of Asustek Computer and its supply chain partners went to Chongqing and Chengdu in western China, in late November 2010 to make final evaluations to select one of the two to set up an operational base, according to the company. Both cities are roughly equal in physical feasibility and government incentives, and Asustek's most important consideration is logistics benefits for its global operation. A decision will not be made until first-quarter 2011, the company said.

On the other hand, Asustek's major partner Pegatron Technology has not yet made a firm decision to invest in western China and the company is aiming to fill up its empty capacity at existing plants as the priority.

Asustek has reorganized its outsourcing strategy and will outsource its notebook and netbook orders to Pegatron, Quanta Computer and Compal Electronics. Asustek will halt its cooperation with Foxconn Electronics (Hon Hai Precision Industry) after Asustek ends sales of the K series notebooks. Quanta has already started manufacturing notebooks and Eee PCs, while Compal will start manufacturing in January 2011.

In 2011, Pegatron will still receive 50% of Asustek's total orders, while Quanta will have about 30-35%, Compal 10-15% and Foxconn less than 5%.