In continuation of a MoU (Memorandum of Understanding) signed on October 2008 with the Chongqing Municipality for a new PC plant in Chongqing, China, HP is set to sign a supply agreement with Taiwanese PC maker Inventec, whereby the latter will build a new PC plant in Chongqing for HP, Taiwan's Commercial Times reported on March 17.

The new PC plant, to be based in Xiyoung Microelectronic Industrial Park in Chongqing, China, is slated to churn out four million notebook PC annually. Inventec declined to reveal further details of the deal though. Should the plan to be finalized in the first half of 2009, the plant will kick off construction in the latter half of 2009, according to the same source. Pursuant to the MoU previously signed, the new plant will begin operations in 2010 at the earliest.