TAIPEI, TAIWAN– In March, Compal Electronics predicted annual notebook production would reach 60 million units by 2010. The company also planned to increase its production capacity in China and Vietnam. But now Compal will take a “less aggressive approach” to investment capacity in both countries and has readjusted its shipment forecasts.
 
Instead of expanding further in China, the company will refocus toward optimizing production at its four existing plants. An increase of 30% to 40% in related production efficiency is expected.
 
Its annual shipment forecast for 2009 has been recently reduced to 35 million, down from September’s forecast of 30 million to 40 million units. In addition, the annual shipment goal has been reduced from 32 million to 27 million units. The company sites a dramatic drop in customer demand for the adjustments.
 
The reduced shipment goal still might not be reached. Notebooks shipped during the third quarter totaled 6.9 million units, and industry insiders are predicting an annual shipment of 26 million to 26.3 million units.
 
Despite the downturn, Compal has stated that its workforce will not be affected–the company is planning to add 300 technician jobs in 2009. Ray Chen, president, believes Compal needs to focus on “continuing its research and developing ability” because it is critical for future growth.

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