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Asustek may set up 2nd operating headquarters in China's Chongqing.

Taipei, Nov. 11, 2010 (CENS) -- Following HP and Acer's footsteps of building headquarters in Chongqing City, western China, the Taiwan-based Asustek Computer Inc., a globally leading PC supplier, has intended to locate its second operating headquarters in the western Chinese municipality, according to company sources.

The sources said that Asustek, which was heavily solicited by the local government officials only a few days ago, has assessed the possibility of establishing the headquarters in Chongqing. If everything goes well, the firm will sign an investment letter of intent with Chongqing City Government at the end of this year at the earliest.

In addition to huge local market potential for PCs, Asustek has also set sight on the convenient and well-developed traffic systems in Chongqing, which is helpful to its global operations deployment, not to mention that the firm, with the headquarters operational in the future, can also enjoy more preferential tax treatment and cheaper labor there.

Asustek is expected to ship about 17 million notebook PCs this year, and aims for shipment of over 20 million units in 2011 to rank among the world's top four notebook PC brands. In 2012, the firm is going to challenge the No. 3 place. For sure, the operating headquarters to be located in Chongqing will give the firm a booster in the race, as it can better explore and handle new contract orders for an estimate of more than 10 million units a year.

On the other hand, Pegatron Corp., which will supply around 50% of Asustek's needed notebook PCs in 2011, is also believed to build new production lines along with the client's move to open an operating headquarters in China. Industry insiders noted that the notebook PC maker is very likely to set up operations in Chongqing to secure the client's contract orders.

Excluding Asus, the world's top five notebook PC brands, namely HP, Acer, Dell and Lenovo, have deployed their operations in China's western metropolises of Chongqing and Chengdu, in an effort to further expand their business in China's huge domestic consumer market.

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Title Annotation:Asustek Computer Inc.
Author:Chuang, Steve
Publication:The Taiwan Economic News
Geographic Code:9CHIN
Date:Nov 11, 2010
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