Lenovo Plans to Increase In-House Manufacturing of Laptops

Lenovo to Boost In-House Manufacturing, May Start Building Its Own Components

by Anton Shilov
10/09/2012 | 09:36 PM

To maintain its rapid shipments growth while sustaining high quality, Lenovo Group wants to increase in-house production of notebooks. To do so, it will need to add more suppliers of computer parts into its supply chain or even venture into parts manufacturing, according to a media report.

 

Institutional investors said that about 30% - 50% of Lenovo’s laptops for sale this year will be manufactured at its own manufacturing facilities, while the remainder is to be outsourced to contract makers like Compal Electronics, Quanta Computer and Wistron Corp., reports Taiwan Economic News. Going forward, the company intends to boost its own manufacturing and make not only premium ThinkPad products, but also mainstream models in-house.

To minimize manufacturing costs, Lenovo Group has gradually asked its contract PC producers to use designated parts and components in its laptops. Moreover, as the company is set to increase production at its local facilities, it intends to attract more local PC components contractors to its supply chain and may even venture into parts manufacturing. The moves will not only let Lenovo, the world's No. 2 PC supplier, to increase its sales, but will likely help to increase quality of laptops and improve choice of products for the end-user.

Adding local vendors or starting to make PC components itself will obviously squeeze out some Taiwanese parts suppliers, especially those engaged in connectors and conventional lithium-ion cylindrical batteries, from the brand’s supply chain in the near future.

Lenovo Group did not comment on the news-story.