14 DAY TRIAL // Lenovo and Compal decided it would be useful to combine their resources, so they started to enact a plan meant to bring a new PC manufacturing facility into existence.
Intel, IBM, TSMC, Samsung and Globalfoundries probably stole the limelight, as far as investments go, with how they granted a $4.4 billion investment to the state of New York.
This doesn't mean that other companies aren't setting up financial ventures of their own though, like Lenovo and Compal did.
For those that want an update, the former is the current holder of the third spot in the Top PC makers list, while Compal is one of the biggest makers of consumer electronics.
The two have decided to jointly build and manage a facility in Hefei, China, where Lenovo laptops and all-in-one desktops will be built.
Lenovo already has a number of in-house factories and outsourcing partners, Compal being one of them, but this newest facility will extend that global manufacturing network.
Considering how quickly Lenovo grew in profile, making partnerships intended to maintain or even accelerate this expansion process is quite in-character.
“This joint venture will help us further optimize our manufacturing network, increase production capacity and satisfy rapidly growing demand for our offerings,” said Yang Yuanqing, chief executive officer of Lenovo.
“Based on our deep understanding of customer requirements, it will also help us provide innovative products to our customers in a faster and more efficient way, while enhancing our integrated innovation capability.”
To start with, Compal and Lenovo will pump $100 million in the joint venture, after which another $200 million will follow.
The full-scale manufacturing stage should be reached even before the ongoing year (2011) is out. Lenovo will control 51% of the factory and Compal the remaining 49%.
"As the fastest growing major PC company in the world, Lenovo is fully committed to the PC industry for the long term and we are very optimistic about its future, while making significant long-term investments in the mobile Internet,” said the Lenovo CEO.