Aaron Lee, Taipei; Joseph Tsai

 

Quanta Computer reportedly has purchased CNC machines through its affiliates to receive direct supply of unibody chassis used for ultrabooks.

Compared to its fellow competitors that entered the metal chassis industry through alliances with chassis players, Quanta's plans for the chassis industry are to make investments in chassis players and self-developing related technologies.

With the increasing labor costs in China possibly set to affect ODMs' 3-5% gross margins, ODMs are becoming more aggressive about controlling their costs, and vertical integration has become a major tactic to help reduce costs. Since one of the key demands for brand vendors placing ultrabook orders with ODMs, is ODMs' ability to control the supply of metal chassis; ODMs are pushing to strengthen their supply.

Meanwhile, Inventec made several investments and entered cooperation with upstream chassis players in 2011 and is already set to start shipping ultrabooks in the second half of 2012.

Compal Electronics has formed a joint venture with chassis maker Ju Teng and expanded its number of CNC machines from 1,000 to 1,200 at the end of 2011, The volume is expected to reach 2,500 by the end of the first half of 2012.

Wistron, in addition to seeking a new partner to establish a joint venture, is working on developing new materials for chassis and is aiming to achieve a similar thickness as metal chassis, while featuring better color and quality options.