[4] The acquisition was completed on 1 October 2005, with the formation of BenQ Mobile, led by a German CEO, Clemens Joos, and a Taiwanese chairman, Jerry Wang.

[5] Part of the reason why BenQ was chosen by Siemens was the Taiwanese company's interest to keep German locations open - the headquarters in Munich and the manufacturing plants in Kamp-Lintfort and in Bocholt.

[4] Other research and development and manufacturing plants were located in Aalborg, Beijing, Suzhou, Ulm (also in Germany), Manaus, Mexicali, Taipei and Wrocław.

[12] The company ended up making huge losses, with parent BenQ losing $1 billion (€840 million) from the acquisition to September 2006,[13][14][15] and its share price dropping by 45 percent.

Siemens was heavily criticised by some German politicians and labour unions for mismanagement that led to the bankruptcy under subsequent BenQ ownership.

[21][25] A BenQ executive said that stopping funds for the Mobile subsidiary and forcing it into insolvency protection was a "really tough decision" and not as easy as "just walking away" as was reported by some media outlets.

[27] As of March 2007, 13 executives, including Eric Yu, were detained in Taiwan accused of selling their shares in BenQ before the announcement knowing about the bankruptcy filing.

[29] At the same time Siemens was facing wide allegations in Germany of internal corruption and bribery not necessarily related to BenQ Mobile.

[25][30] After no suitable investors or buyers were found for the business, BenQ Mobile's insolvency administrator, Martin Prager, said on 2 January 2007 that the company would have to shut down.