Taipei, March 11, 2010 (CENS)--Quanta Computer Inc. shipped about 3.4 million notebook PCs in February, better than market expectations.

Due to the nine-day Chinese New Year holidays in February, Quanta`s shipments last month dropped modestly relative to 3.5 million in January.

Compal Electronics Inc., Quanta`s major rival, delivered about 3.9 million notebook PCs in February. Industry sources said that both the two major contract notebook PC assemblers in Taiwan have effectively solved the labor-shortage problem at their China plants.

Quanta began suffering impacts from material/component supply shortage in the fourth quarter of 2009, making it lose the world`s No. 1 position (in terms of notebook PC production) to Compal, which delivered a total of 37.5 million units last year. In January, Quanta shipped 3.5 million notebook PCs, compared to Compal`s 4.1 million units.

Compal`s president Ray Chen recently claimed that his company`s first-quarter shipments are expected to continue pulling ahead.

Quanta had consolidate revenue of NT$74 billion (US$2.32 billion) in February, down 7.6% month-on-month (MoM), but up 49.3% year-on-year (YoY).

Compal`s president Chen recently claimed that his company`s factories in China have recruited new workers after the Chinese New Year and these new workforces would greatly ease the company`s labor shortage from March after they join the production lines. The president added that Compal`s second-quarter shipments are expected to maintain the same level as that in the first quarter.

To solve the labor-shortage problem, Compal said that it would continue to recruit new employees in China and the company`s new facility in Vietnam would be inaugurated at anytime if needed.

Quanta, however, is constructing a new facility in Chongqing, Sichuan Province of China and plans to recruit 6,000 workers for the new factory.

Quanta maintains its annual shipment goal of 50 million notebook PCs this year unchanged, while Compal`s publicized goal is 48 million units.

(by Quincy Liang)