TAIPEI -- Unitech's decision to add capacity here instead of mainland China has a curious reasoning to it: labor rates.

The chairman of the printed circuit board manufacturer today said the previously announced NT$4 billion ($132 million) investment is intended to reduce labor costs in China.

In fact, Unitech's decision to discontinue adding capacity in China is due to automated lines, which require more engineers instead of lower-paid technicians, and China's high turnover -- a 5% per month -- reports CNA.

Unitech's new capacity will come online at the Letzer Industrial Park in Yilan County.