Chipset makers VIA and Acer Labs eyeing China

Taiwan's top two chipset makers are speeding up their investments in China, local media reported yesterday.

VIA Technologies Inc (威盛電子) announced on Friday that it had remitted US$16 million to China to set up a branch there. VIA said it plans to build three R&D centers and logistics facilities in Beijing, Hangzhou and Shenzhen.

The investment has raised VIA's stakes in China to about US$20 million.

VIA, which expects China to become one of its largest markets for processors and chipsets, has opened sales offices in China's largest cities this year.

The China research centers are intended to develop VIA's computer processors, chipsets and wireless communication technologies.

In July, Acer Laboratories Inc (楊智科技) invested in its Shanghai branch company through a holdings company in the British Virgin Islands.

Analysts said the chipset makers have been attracted by both the quality of China's IT talent pool and its growing PC, multimedia and communications markets.

VIA marketing manager Cheng Yung-chien (鄭永健) said the company plans to cooperate with China's academic institutions and train about 2,000 IT technicians within two years.

VIA started volume production of its first low-end computer processors six months ago.

In related news, VIA registered net profit of NT$5.122 billion (US$159 million) for the January-September period. VIA's earnings per share for the first nine months stood at NT$8.88.

VIA's sales for the January-September period 2000 reached NT$22.813 billion.