Acer denies anti-S. Korea touch screen supply alliance
The China Post news staff and CNATAIPEI, Taiwan -- Taiwan's Acer Inc. yesterday denied a local news report that it is organizing an alliance of suppliers in the country's touch screen supply chain to battle competitors in South Korea.
January 15, 2013, 11:53 am TWN
“The report is wrong,” Acer spokesman Henry Wang told CNA. “What Acer has to do now is to focus on our core business, improve our research and marketing abilities, and provide a good user experience in order to raise our brand value and operating profit margin.”
The Economic Daily News reported yesterday that Acer Chairman and CEO J.T. Wang is organizing Taiwan's first touch screen industry alliance, combining upstream integrated circuit designers such as MediaTek, midstream panel manufacturers including AU Optronics and Innolux Corp., and downstream systems integrators and PC makers including Acer and Asus.
The intention is to form a strong force to compete with South Korea, which has put a major focus on touchscreen manufacturing, the report said. The goal of the alliance is to prevent South Korean firms such as Samsung from becoming a threat to Taiwanese manufacturers.
Yet according to Morris Chang, chairman and CEO of Taiwan Semiconductor Manufacturing Co., there is no need for the formation of a government-supported Taiwan industry alliance to compete with Samsung.
“Getting the government to sponsor an industry alliance to defeat Samsung is a useless idea,” he said. “The Taiwan government lacks the financial capability to create a Samsung-like alliance to compete with Samsung.”
According to him, the best way to compete with Samsung is to target a specific business unit of the Korean conglomerate and quash it.
“For example, Taiwan has superb semiconductor companies, which are more than capable of competing with Samsung's IC business unit,” he said. “Taiwan also has great flat panel and handset manufacturers which can also take on the corresponding business units at Samsung.”
“In my view, this strategy is enough to conquer Samsung,” he added. “What Taiwan should do in the process is to enhance its own innovation and research and development capability to add value to their products.”