Taiwan's Acer to open R&D center in China

By Staff and reports

TAIPEI, Taiwan (CNN) -- Taiwan's Acer will open a research center in Beijing, ushering a significant shift in production from Taiwan to the mainland.

The research center, set up by the Acer Brand Operation (ABO) of the Acer Group, will develop PCs tailored for the home market, Taiwan's Commercial Times reports.

ABO president J.T. Wang told reporters that the PC maker has awarded outsourcing contracts to firms in China and Italy as it weans itself away from Wistron -- the Acer Group contract PC maker that split from the group in July.

China springboard

Acer Brand Operation will use the Beijing center as a springboard into the vast Greater China market, which includes Hong Kong and Taiwan.

Wang said that the center would not only market the hardware it develops, but software solutions as well.

The operation plans to gain 30 percent of its revenue from the software integration business in 2003, according to the Commercial Times.

In China, ABO has contracts with assembly firms to deliver 10,000 to 20,000 desktops a month.

To be closer to the European market, ABO has also awarded a portion of its manufacturing contracts to firms in Italy.

The Italian manufacturers are contracted to initially ship 2,000 to 3,000 systems a month initially, with an eventual target of 4,000 to 5,000 systems a month.

The Acer brand PC maker is also exploring the option of contracting firms in Brazil to secure a foothold in the South American market.

Despite its increasingly global array contract partners, Wang said the PC maker still purchases key components from Taiwan.

Last month, the Acer Group posted disappointing results with sales plunging 35 percent in June from the same period the previous year.

Taiwan's top PC maker said June sales were knocked down to $175.2 million from $271 million in June 2000.