Wistron chairman Simon Lin, at TecMall Forum in Taiwan, pointed out that the notebook manufacturing industry will continue to face rising labor and material costs in 2011, but these issues are not major problems, while the increasing Taiwan exchange rate will be the major problem that the industry cannot avoid next year. If the US to NT dollar exchange rate remains below NT$30 (US$1), Wistron is unlikely to achieve its gross margin goal of 5.5-6%, and if it drops to NT$28, makers could be in serious trouble, Lin said.

Lin noted that the rising Taiwan exchange rate is already damaging notebook makers' profits, although Taiwan's central bank is taking measures at the end of each trading period to stop the rise, it is not helping makers. Lin believes that everybody involved in the issue will need to reevaluate to resolve the problem.

Currently, most notebook makers are already in negotiations with downstream brand vendors hoping to increase their manufacturing quotes, but since brand vendors are also facing pressure from the exchange rates, negotiations are unlikely to reach a result anytime soon, Lin noted.

Wistron shipped 2.4 million notebooks in November and Lin noted that the company's sequential notebook shipment growth target for the fourth quarter is still 0-5% as its clients' orders are still stable. As for the first quarter of 2011, shipments could stay level compared to the fourth quarter as many new notebook models will start shipping in the quarter, Lin pointed out.

As for investment in inland China, Lin pointed out that the company is mainly setting up new bases to coordinate its clients, and the company has a high likelihood of building plants in Chongqing, China.