As Acer signed contracts on December 1 with the local government of Chongqing, China to invest US$150 million to establish a second operating center, company CEO Gianfranco Lanci has commented that the Chongqing government's strong support will allow Acer to accomplish tasks in only nine months that may take four years to complete in Europe.

Lanci believes that Chongqing's infrastructure, logistics system and stable labor force, and cheap energy will allow Acer to push into the China market without concern. In addition to the initial investment, Acer will continue to invest more resources at the new site.

The new operating center is expected to start functioning in early January 2011 with an initial staff of about 30-40 and will surpass 100 in the future. The center will focus on expanding Acer's marketing in western China, as well as handling shipments via rail to Europe.

The Chongqing mayor also pointed out that he expects Hewlett-Packard (HP) and Acer to each ship about 40 million notebooks from Chongqing after three years with total volumes to reach 80 million units. In addition to orders from other vendors that have plants in the city, notebook shipments from Chongqing should reach 100 million per year, accounting for one-third of global shipments.

Although Compal Electronics, Wistron and Pegatron Technology have not yet revealed their plans for investment in western China, the mayor pointed out that the three firms will all make investment in Chongqing along with Acer. With the existing players, Chongqing will have two notebook brands, six makers, and about 200 upstream component makers.

Acer signing contract with Chongqing government
Photo: Yen-Shyang Hwang, Digitimes, December 2010