Acer to Set Up 2nd Chinese Headquarters in Chongqing

Taipei, Nov. 4, 2010 (CENS)--In a major step to penetrate China's emerging inland market, Acer Inc., Taiwan's leading PC brand, announced yesterday (Nov. 3) a decision to set up its second Chinese operational headquarters in Chongqing City.

Acer will also rally its contract manufacturers, including Compal and Wistron, and supply-chain member firms to establish factories in the city, thereby forming a complete manufacturing clustering. The company is scheduled to sign a contract with Chongqing City government for the project in December.

Acer will join a number of domestic and foreign peers which have established operational bases in the city, including HP, its archrival, Quanta, and Hon Hai.

An Acer manager pointed out that along with the setup of the Chongqing base, the company has formulated a marketing plan for tapping the western-China market.

The Chongqing base will supplement the function of the company's existing Chinese operational headquarters in Shanghai. Acer may rally its contract manufacturers and supplying factories in setting up factories in Chongqing, in emulation of the practice of HP, thereby forming another Chinese manufacturing base for the company, on top of the existing one in Kunshan, Jiangsu Province.

HP and Hon Hai teamed up in setting up a manufacturing base in Chongqing last year, a move which attracted the participation of Quanta and Inventec, HP's contract manufacturers, afterwards.

In addition, two other leading international PC brands Dell and Lenovo have set up manufacturing bases in Chengdu, making Sichuan Province an emerging PC manufacturing bastion.

The Chongqing headquarters will be essential for Acer to expand its presence in the Chinese market, in order to become the world's leading PC brand. Gianfranco Lanci, chief executive officer of Acer, reported that the company has targeted raising the share of the Chinese market in its total revenue to 20% by 2013, up from 7% now.