Acer's About Face

Shih's new game plan may be undercut by problems with China

For Acer Inc., this was supposed to be the year for a breakthrough in China. The Taiwanese computer giant last fall opened a $50 million factory in Guangdong province that churns out 200,000 desktop PCs a month. Acer plans to build two more factories by midyear, and six more are in the planning stages. After years of frustration trying to woo mainland officials infatuated with domestic computer makers, CEO Simon Lin says Acer finally is ready for battle in China's vast market. "The war hasn't even started yet," says Lin.

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