Up to 9,000 Acer workers to transfer to Wiltron

By Alfred Lee, The China Post

A total of 9,000 employees of Acer DMS (design, manufacturing and service) worldwide will transfer to Wiltron, a newly registered company that will take over everything from Acer DMS, local press reported yesterday.

Earlier this year Acer Inc. underwent one of the biggest reorganizations in its 25-year history. It was divided into Acer DMS, Acer Brand Operation (ABO) and Holding & Investment Business (HIB).

Of the 9,000 employees, 4,000 work in Taiwan, and the remaining work in other parts of the world, including Europe, the U.S., the Philippines, mainland China and Mexico. Simon Lin, the head of Wiltron and previously president of Acer Inc., said the sales target of this year was NT$100 billion, of which 70 percent will come from sales of notebook PCs. Wiltron will also place continued emphasis on information appliance (IA) products.

A relatively new direction for the company is its inroads into Xbox products. The IA, Xbox, Play Station 2 (PS2) and Set-Top box is expected to contribute to less than 10 percent of this year’s business. Wiltron is also a major supplier of computer servers for Internet and network applications and desktop PCs, which may make a contribution of about 30 percent to sales.

The company plans to sell 2.5 million notebook PCs this year. In addition to its notebook PCs, servers, desktop PCs, IA products, and game machines, Wiltron has been planning to branch into production for other branded products with its huge production capacity in Taiwan, mainland China, the Philippines, and Mexico. Its second assembly plant, located in Zhong Shan, Guangdong province, in mainland China, is expected to start operation in July or August, and will boost production capacity substantially.

Lin stated that Wiltron would move very aggressively into the markets of Xbox and PS2. The advantage of Wiltron is that it has its own DVD design and production capability and all its Xbox and PS2 models will have DVD functions. It will actively solicit orders from Microsoft for Xbox and Sony for PS2.