Acer may build for IBM

Acer is close to inking a $2 billion deal to produce desktop computers in Taiwan for IBM (IBM), according to an Associated Press report.

Acer will produce between 70,000 and 80,000 units a month from the first quarter 1997 into 1998, the report said. The production agreement could be signed as early as next week, and laptop production may also become a part of the deal as well.

The agreement could be a significant one for Acer. The company recently said it would earn only half as much profit as expected because its chip production business was affected dramatically by falling memory prices. Acer officials in Taiwan would not comment.