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Acer was founded in 1976 in Hsinchu City, Taiwan. The company began with eleven employees and US$25,000 in the capital. Initially, it was primarily a distributor of electronic parts and a consultant in the use of microprocessor technologies.
In 1998, Acer reorganized into five groups: Acer International Service Group, Acer Sertek Service Group, Acer Semiconductor Group, Acer Information Products Group, and Acer Peripherals Group. To dispel complaints from clients that Acer competed with its own products and to alleviate the competitive nature of the branded sales versus contract manufacturing businesses, the company spun off the contract business in 2000, renaming it Wistron Corporation. The restructuring resulted in two primary units: brand name sales and contract manufacturing. In 2001, the company sold its manufacturing units BenQ and Wistron in order to focus resources on design and sales
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