Taiwan-based Hon Hai Precision Industry and the international technology company Hewlett-Packard have reached an agreement with the municipal government of Chongqing on the construction of a plant for the production of notebooks and relevant devices.

With a total investment of USD1 billion, this new plant is expected to put into production in 2012, with an annual production capacity of 20 million notebooks and an annual output of USD10 billion.

Prior to this, Hon Hai gained a contract of two million consumer notebooks from HP and this amount accounts for about 5% of HP's total notebook shipment in 2010.