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Electronics Production | May 15, 2007

Foxconn, Wistron &amp; Quanta<br>squeezed in Acer, HP dispute

Acer has forced it's three suppliers Foxconn, Wistron and Quanta to stand by the Acer's side in a legal battle that Acer has with HP. This situation puts the EMS providers in a bind as they are suppliers also for HP.
An Acer subsidiary filed a lawsuit last week agains the three companies to force them to abide by their contractual agreements that indemnify Acer in patent suits. The three suppliers could face fines if they refuse to honor their contracts and help Acer in the case. They are also facing a risk of losing future orders from HP if they cooperate. Quanta said legal proceedings with Acer have already started. Foxconn has said that the company has not yet received papers from the court, and declined further comment. Wistron declined to comment specifically on the Acer lawsuit, InfoWorld reported.

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