Facing strong pressure from rising labor costs in China, notebook ODMs will accelerate their pace in shifting production to inland China in 2013 with Compal set to move all its notebook production to plants in Chongqing and Chengdu, while Inventec's shipments from Chongqing will triple in 2013, according to sources from the upstream supply chain.

Since to the government of Shenzhen reportedly plans to raise minimal wages from CNY1,500 (US$241) to CNY1,700 in March 2013, which could influence nearby cities to follow suit, notebook ODMs are concerned that the move could impact their performance.

Some notebook ODMs originally hoped to cut labor costs by investing in inland China, but due to upstream suppliers' mixed opinions about moving, ODMs still have rather high production costs in inland China. However, as China's salary levels may see another hike in 2013, accumulating production capacity has become a major task that the ODMs need to deal with.

Quanta Computer previously noted that it will move all its notebook production, except that for Apple, to Chongqing in two years.

Inventec shipped two million consumer notebooks from Chongqing in 2012 and the volume is expected to rise to six million units in 2013. The company's plants in Shanghai will focus on producing enterprise models.