BUSINESS
09/27/2011 05:14 EDT | Updated 11/27/2011 05:12 EST

China's Lenovo and Taiwan's Compal enter joint venture to make laptops

TAIPEI, Taiwan - Taiwan's leading contract PC maker, Compal Electronics, says it will establish a joint venture with China's top computer firm Lenovo Group to make laptops in China.

Compal said Tuesday Lenovo will acquire a 51 per cent stake in the $100 million venture and Compal will own the rest.

Compal and other local makers have been chief suppliers for American computer companies such as Hewlett-Packard. But they are increasingly turning to the Chinese market as PC sales in the U.S. are slowing amid brisk sales of Apple Inc.'s iPads.

Compal Vice-President Gary Lu said the new venture will produce laptops by the end of 2012.

Local makers expect PC sales to rebound by 2013 with the launch of Windows 8 operating system and an ultralight PC known as the Ultrabook.