Another About Face For Acer

Problems in China may undercut its new game plan

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 with six more in the planning stages, says CEO Simon Lin, Acer soon will be ready for battle in China's vast market. "The war hasn't even started yet," says Lin.

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