Rumors have spread in the IT market that Wistron is planning to stop its notebook production in Kunshan, China and will move all its production capacity to plants in Chongqing and Chengdu in inland China. The company has responded by saying it has not yet shut down the notebook production at its Kunshan plants and will make decision based on clients' demand and will continue to make adjustments to achieve better efficiency.

Because of the weakening global notebook market and vendors gradually shifting their orders to the top-2 ODMs, smaller ODMs are facing strong pressure over costs, prompting them to integrate capacity to improve production efficiency.

Wistron's plants in Chongqing, China are mainly for fulfilling orders from Hewlett-Packard (HP) and Acer, while its plants in Chengdu are responsible for orders from Dell and Lenovo.

Wistron is rumored to have been talking with its clients, looking to shift all its notebook production to plants in inland China because those plants are currently seeing low utilization rates and the ODM will also be able to save some management costs. In addition, one of Wistron's major clients, Lenovo has been shifting orders away from Wistron to the vendor's joint venture with Compal Electronics, prompting Wistron to take actions to improve its production efficiency.

Currently, Wistron's Chongqing plants contributed 60-65% of the company's notebook shipments, the Chengdu plants 30-35% and the Kunshan plants only less than 10%. The Kunshan plants are mainly handling production of mobile devices such as smartphones and tablets as well as LCM lamination services.