Taiwanese PC maker Compal will carry out a capacity expansion project at its notebook PC plant in Kunshan, China, in a bid to tap the surging demand for notebook PCs, including low-cost models, Taiwan Economic News reported.

Compal's expanded plant is slated to begin mass production in the second quarter of 2008. Moreover, Compal's expansion project is expected to raise the company's annual notebook PC production capacity in China to a maximum of 40 million units, up from 23 million units at present. Of Compal's total notebook PC production capacity, however, less than 10% will be assigned for low-cost models, including those contract manufactured for Dell.