Taipei: Acer Inc, the world’s No.2 PC vendor, will set up its second China operations headquarters and a manufacturing base with its partners in Chongqing, the latest technology firm to expand into China’s western interior.
Acer will sign an agreement with the Chongqing city government early in December, it said in statement on Wednesday. It did not give any financial details. The company currently has a China headquarters in Shanghai.
It will join international and Taiwanese tech firms including Dell, Hewlett-Packard and Compal in moving into China’s west, where wages are lower and workers more easily available than in traditional manufacturing sites near the coasts.
“Efforts made by the Chinese government to enhance western China’s overall infrastructure has resulted in the emergence of a new IT community,” Acer said in a statement.
“The additional benefit of stable manpower supplies means that the move to western China can expand Acer’s presence in the country and raise competitiveness on a global scale.”
With China’s government determined to raise household incomes and reduce wealth disparities, more Chinese in less affluent rural areas are likely to become consumers, contributing to the attraction for global manufacturers.
Acer will talk to its partners on details of the manufacturing base, while it will focus on sales and marketing, said Henry Wang, an Acer spokesman.