Samsung Electronics plans to place ODM orders for notebook PCs with Taiwan-based Compal Electronics for shipments in 2012, according to Taiwan-based supply chain makers.

Compal declined to comment on the report.

Samsung in August 2011 evaluated the feasibility of outsourcing production to Taiwan-based ODM makers Quanta Computer, Compal and Pegatron Technology and finally chose Compal, the sources pointed out. Although initial ordered volumes is expected to be quite small, this is the first time for Samsung to release ODM orders, a starting point for possible further cooperation, the sources indicated.

Samsung currently undertakes in-house production of own-brand notebook PCs at its factory in Suzhou, eastern China, the sources noted. The factory has an annual production capacity of about 17 million notebook PCs, rendering it unnecessary for Samsung to release ODM orders. But Samsung needs to rely on outside ODM production to minimize production costs even if the factory's capacity is not fully utilized, the sources pointed out.

Samsung shipped nearly 10 million notebook PCs in 2010 and is expected to ship 12.6 million units in 2011 and 15 million units in 2012, the sources noted.

With clients including Acer, Dell, Lenovo and Samsung, Compal's shipments of notebook PCs are expected to increase by 20% from 40-42 million units estimated for 2011, the sources pointed out.