Toshiba has recently decided to completely shift its notebook production from its ODM partners' plants in coastal cities of China such as Shanghai to those in inland areas in western China, according to sources from the upstream supply chain.

　　Hewlett-Packard (HP), Acer and Asustek Computer all have already started sourcing their notebooks completely supplied from ODMs' plants in inland China.

　　Toshiba is a member of an investment project developed by the government of Chongqing, western China in early 2013 and the vendor is set to have five million notebooks produced in Chongqing annually, handled initially by Quanta Computer.

　　Quanta has already moved all its notebook orders except those from Apple to its plants in Chongqing, while Compal Electronics is also trimming its production in Kunshan, China and turning its focus to plants in Chongqing and Chengdu in order to save costs.

　　Notebook brand vendors were originally concerned about moving all their production to inland China, fearing that it might risky to place all eggs in one basket.

　　The biggest factor attracting vendors and ODMs to invest in inland China is the local governments' subsidies. Currently, the local governments are providing subsidies to cover some shipment transportation costs and expenses from moving production lines.