Electronics contract manufacturing : Facts and Figures From MMI
A year ago, few people would have associated contract manufacturing with southwestern China, which is far removed from the production centers of China’s coastal cities. But today, anyone paying attention to the notebook industry has learned that the city of Chongqing in southwestern China will soon become a major base for contract manufacturing of notebooks. Hon Hai Precision Industry and two of the four largest notebook ODMs have all decided to locate notebook manufacturing operations in Chongqing, and it has been reported that Hon Hai’s PC factory is already being staffed. But notebooks won’t be the only contract manufactured products in Chongqing, and Chongqing won’t be the only city attracting outsourced manufacturing in southwestern China. And for good reason. Compared with coastal cities, labor and other costs are lower in southwestern China, and its labor supply is more plentiful. Before Hon Hai and the ODMs committed to Chongqing, there was HP, which in 2008 announced plans for a Chongqing plant to produce notebooks and desktop PCs for customers in China. Then in the fall of last year, news broke that Hon Hai began construction of a notebook manufacturing facility in Chongqing (Oct. 2009, p. 4).
In the notebook ODM space, Hon Hai is a relative newcomer, and two of the first-tier notebook ODMs soon made it known that Hon Hai would not be without competition in Chongqing.
Source : https://mfgmkt.com/wp-content/uploads/2015/01/April10.pdf