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 percent 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.