By Star Chang, posted Nov 12, 2011 at 4:23 AM, 1,044 views,

Taiwan Tech Companies continue to thrive in China Chongqing

Chongqing is a major city in Sichuan province, southwestern part of China. Major Taiwanese PC makers as well as hundreds of component producers have established factories in Chongqing, making the city the most important computer production base in China. Chongqing has lured major tech brands, including HP, Acer and Asus and contract manufacturers like Foxconn to set up their base over there. Those companies continue to thrive in Chongqing, shrugging off the global economic slowdown thanks to the various forms of financial assistance offered by the local government. Meanwhile, the shipments of computers laptop which exported from the area have already exceeded 10 million units …

Leading Taiwanese PC makers Acer and Asus set up their second China headquarters in Chongqing this year. Ten major Taiwanese computer producers and more than 200 computer parts and component makers have established branches over there too. Compal Electronics, a major Taiwan contract maker for Dell and HP laptops, have set up production plants in Chongqing this year, strives to become the world’s largest OEM base for laptops. According to some local customs statistics, Acer and Quanta Computer have both shipped 1.7 million computers during last month. The local government has noted that the city plans to produce 100 million laptops and 100 million related electronic terminals annually by 2015. The geography location of Chongqing also help to reduce transportation costs for tech companies and make the city a major inland electronics production base.

Many Taiwanese companies are favoring Chongqing for their China’s operations due to an abundant local workforce. The authorities have also offered many incentives for Taiwan’s PC industry such as direct charter flights, entry permits for Taiwanese citizens upon arrival, cross-border Chinese yuan’s trade settlement services, 10-year subsidies on income taxes, export tax rebates and export custom declaration services. In addition, the mayor of Chongqing has also paid frequent visits to Taiwan, inviting major Taiwanese businesses to invest in the city. Those tech investment has been the largest in central and western China for three consecutive years. The value of sales from the electronic industry could ultimately exceed 1 trillion yuan (US$157 billion).

The local government also plan to build an ‘Internet Cloud Zone’ with no firewall filter, in order to gain international market share in cloud computing. The well-known online payment company, Paypal, has agreed during last year to establish an International electronic commerce center in Chongqing, aims to boost exports from the nation by helping merchants conduct faster cross-border trade. No matter hardware manufacturers from Taiwan or any other worldwide internet business, the city of Chongqing has already marked the sign of technology spot in China. Chongqing might soon become the China’s Silicon Valley for IT industry.

Source: WantChinaTimes, CHINADAILY, Xinhua

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