Taiwan's Acer to invest $4 mn in China R&D centre

Taiwan's leading personal computer maker Acer said Tuesday it will spend $4 million to set up a global R&D centre in western China to boost its production of smartphones and tablet computers.

Acer will develop hardware and related software and services in cooperation with China Mobile, the world's biggest mobile operator by subscribers, and with the city government of Chongqing, the location of the centre, it said.

The $4 million will form Acer's initial investment in the centre, which will also carry out research into Chinese market conditions and consumer behaviour patterns, it said in a statement.

In April, Acer replaced its chief executive and president Gianfranco Lanci, citing differing views over the future of the firm, which is struggling to branch into the tablet market amid slowing demand for PCs.

Acer's new corporate president Jim Wong also heads the new R&D facility in Chongqing, the centre of the company's China activities and home to its global notebook production.

The company has lowered its shipments forecasts three times in recent months and cut 300 jobs in Europe, the Middle East and Africa to reduce operating expenses by $30 million annually.

Acer started shipping tablets in March but is struggling against Apple's popular iPad. It previously aimed to roll out 5-7 million tablets this year but has since lowered the target to 2.5-3 million.

(c) 2011 AFP