Inventec chairman Richard Lee, left, and senior adviser George Wang. (Photo/China Times)
Taiwanese contract laptop maker Inventec has announced it will spend US$71.6 million to expand the production capacity of its factory in Nanjing in eastern China's Jiangsu province for its client, budget smartphone brand Xiaomi. Observers predict that the firm will also receive bulk orders from PC giant Lenovo in the second half of this year, reports our Chinese-language sister paper Commercial Times.
At an investor conference on Tuesday, Inventec reported a growth in sales of its laptop, server, smart hand-held device and solar energy businesses, while its earning per share last year reached NT$1.97 (US$0.06), the highest in five years, according to the Taiwan-based United Daily News.
Inventec chairman Richard Lee said the firm's production is likely to increase significantly as Xiaomi has raised its sales target for this year. Thanks to the orders from Xiaomi and the booming wearable device market, Inventec has decided to expand its production capacity of its Nanjing factory. The firm also targets over 10% growth in revenue this year, said general manager David Ho.
Observers said Inventec may also be planning to increase its production capacity to satisfy orders for Apple's rumored upcoming iWatch wearable device. They predict that the firm's revenues for the first and second quarter of the year will be higher than the same periods last year.
The firm's revenue is also likely to be boosted by its server sales. Inventec has been working with Intel and Dell and has partnered with Lenovo since last year. Although the Taiwanese firm has only received orders for Lenovo's new products, its shipment is likely to surge in the second half of this year when Lenovo releases futher models.
Meanwhile, US and Chinese internet service providers have increased their orders for Inventec's Internet Protocol Data Center. Sales from servers are predicted to amount to 5%-10% of the firm's revenue by the end of this year.
Richard Lee 李詩欽
David Ho 何代水