Starting in August, Compal Communications will expand its production capacity at its factory in Nanjing by seven million units a year. The added capacity will be used for the production of GSM and CDMA handsets, as well as PDA. It will also set up a R&D center in Nanjing, which will focus on software, motherboards and electronic components. It plans to increase the number of researchers staffing the new center from the initial 100 to 300 by 2008.