Acer Inc (宏碁), the world’s second-largest PC vendor, said it signed an agreement yesterday with the Chongqing Municipal Government to set up its second operating hub in China.
Acer said the Chongqing base is scheduled to begin operations next month at the earliest.
The PC vendor announced last week that it would invest up to US$150 million in the southwestern Chinese city and hoped Taiwanese component suppliers would move to Chongqing to create a manufacturing cluster.
Acer, which has an operating hub in Shanghai, is joining other local high-tech companies in developing a presence in China’s inland market.
Quanta Computer Inc (廣達), the world’s largest notebook computer ODM service provider, and Hon Hai Group (鴻海集團), the largest contract electronics maker in the world, have already set up operating bases in Chongqing.
Chongqing, which has a sound infrastructure and enjoys a stable supply of manpower, is a transportation hub connecting Europe and southeast China, Acer said.
Acer CEO Gianfranco Lanci said China would become the world’s biggest computer market within three years, overtaking the US.
“We see China as huge potential,” Lanci said at a press conference in Chongqing.
Acer, who trails only Hewlett-Packard Co (HP) globally, is aiming for the No. 2 slot in the Chinese market, Lanci said.
For Acer to overtake the Chinese market leader Lenovo Group Ltd (聯想) in its home country seems “impossible,” Lanci said.
The Taipei-based company is currently ranked sixth in China with a third-quarter market share of 4.3 percent, while Lenovo has 28.8 percent, according to IDC.
“We never said we want to be No. 1 in China,” Lanci said. “We want to become No. 2 in China, and we are almost No. 2. That is much more achievable.”
Globally, Acer aims to displace HP from the top spot, he said, reiterating a target the company set previously.
The Taiwanese company expects its sales in China will reach US$2.5 billion by next year, compared with US$843 million last year, through its cooperation with Founder Group (方正集團).
Under their strategic alliance, Acer is allowed to use Founder’s broad distribution network in China to sell Acer products in tier 4-6 Chinese cities — which have populations of under 20,000 people — as well as in rural areas. Founder began contributing to Acer’s sales in October.
Wistron Corp (緯創), Taiwan’s third-largest notebook contract maker, yesterday also announced it would tap into the resources of China’s southwestern region.
The company’s board has approved the investment of up to US$100 million to establish a new manufacturing facility in Chengdu, about 300km from Chongqing.
“This allows us to accommodate the needs of our clients and we won’t rule out the possibility of launching other facilities [in that region,]” the statement said.
The Chinese-language Cnyes.com yesterday reported it is likely that Wistron would set up another manufacturing base in Chongqing in a bid to serve Acer, one of its major brand clients.
Additional reporting by Jason Tan
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