Compal Electronics Inc. has announced an unspecified wage increase for its Chinese workers, according to a report from the Associated Press:

Compal Electronics Inc., the world’s largest contract laptop maker, said Friday that China’s labor shortage and rising wages will pose a big challenge to it amid the recovery in the computer market.

But instead of moving to lower-wage countries, Compal will increase the wages of its Chinese workers and try to improve their working environment, said company chairman Hsu Sheng-hsiung.

He said the wages will increase by a “small amount” but refused to elaborate.

Compal churned out 38 million laptops last year – 23 percent of the world total – mostly from its production base in the Chinese city of Kunshan, near Shanghai.