Quanta Computer will construct a 10-story R&D building opposite its headquarters in Taipei, with construction to kick off in 2012 and take two years, according to industry sources.

The building will mainly house software engineers, the sources indicated. In line with its long-term business goal of developing cloud computing, Quanta plans to recruit 4,000 software engineers, the sources said. Quanta currently has an R&D staff of 3,000-4,000, of which most specialize in hardware development and production, the sources noted.

Quanta has been transforming its business by providing solutions for clients, and will therefore hike the proportion of capex invested into R&D, according to company chairman Barry Lam.

For developing its cloud computing business, simply providing servers, storage and other hardware devices is less profitable than a total solution approach, the sources indicated. However, total solutions are mostly customized, making it necessary to develop hardware and matched software.

Quanta aims to hike the proportion of its total revenues from non-notebook products from 25% to 30% in 2012 and further to 50% in five years, the sources noted.