Nov 30, 2009

Acer in Talks With Foxconn For Notebook Production, Says Chairman

Acer chairman JT Wang has revealed that Acer is in talks with Foxconn Electronics (Hon Hai Precision Industry) For contract production of notebooks in the future. With regards to Acer's notebook orders for 2010, Compal Electronics is expected to secure 40% of the total orders, followed by Wistron and Quanta Computer with 20-30%each, while Inventec will receive any remaining orders, according to industry sources.

However, sources at Acer noted that since Foxconn's notebook R&D is still a low weaker than the first-tier makers, the company is unlikely to land any major orders in the near-term.

Wang also noted that the recent merging of Innolux Display and Chi Mei Optoelectronics (CMO) will not affect the company's panel purchasing from them and Acer will continue to maintain 3-4 regular panel suppliers in the future.

Although one of Acer's panel suppliers, Samsung Electronics, has become a strong competitor in netbook market, Wang said that Acer will continue to purchase panels from Samsung due to its strong technologies and large capacity.

Wang said he has urged Samsung to spin-off its production and brand businesses, to which Samsung has promised to make an approriate separation; although the company added that this will be difficulty to make clear in the short-term.

In 2010, Wang expects Acer's consolidated revenues to grow 15% on year and netbook shipments will account for 30-40% of the forecast 40 million units in global shipments.


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