Chicony Electronics plans to build its third China production base in Chongqing with small volume production slated for the second half of 2011.
Capital required for the new base has yet to be announced.
It is understood that Chicony's base in Chongqing is only about an hour away from where Foxconn Electronics (Hon Hai Precision Industry) and Quanta Computer's bases are located, which means that Chicony can easily supply these system clients.
Chicony currently has production bases in Suzhou and Dongguan, and the Chongqing base is expected to start operation in the second half of 2011 and mass production in 2012.
Chicony's consolidated revenues in 2010 exceed NT$60 billion, and consolidated revenues for the fourth quarter increased slightly on quarter to NT$15.8 billion. Chicony expects consolidated revenues in the first quarter of 2011 to drop by within 10%, which indicates stronger-than-expected demand in the traditional weak season.