Menu
Asustek break-up to pursue profits

Asustek break-up to pursue profits

A familiar name in computer motherboards, Asustek Computer will split into three companies by January to separate its name brand product business from its contract manufacturing operations, it said on Monday.

"We think this will boost our competitiveness in each area," said Jonney Shih, chairman of Asustek, at a news conference in Taipei.

The announcement comes after months of speculation over such a move and years after some rivals in Taiwan first undertook similar changes to avoid conflicts of interest with customers. A number of Taiwanese companies produce IT hardware for huge overseas customers such as Hewlett-Packard, Sony Computer Entertainment and Apple, in addition to their own-brand products.

Acer, the world's third-largest PC maker, was a pioneer in spinning off manufacturing operations in Taiwan. Several years ago the company divided itself in three, using the Acer name for its branded PC business, while spinning off its main contract manufacturing arm into a company called Wistron and its mobile phone and monitor business into Benq. As part of the division, Wistron had to compete against other contract manufacturers for orders from Acer. Some people feared the contract manufacturing business might wither and die without the Acer orders, but instead Wistron has secured some high profile business including Xbox 360 game console orders from Microsoft.

Asustek's name brand business will continue to operate under the same name, while its PC-related manufacturing operations will become Unihan Technology. Asustek's casing, modules and non-PC contract manufacturing business will become Pegatron Technology.

Asustek sells goods ranging from motherboards and graphics cards to laptop PCs and smartphones under a few names, including its popular Asus brand.

The split will take place on January 1, 2008, Asustek said.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags Asustek

Featured

Slideshows

The making of an MSSP: a blueprint for growth in NZ

The making of an MSSP: a blueprint for growth in NZ

Partners are actively building out security practices and services to match, yet remain challenged by a lack of guidance in the market. This exclusive Reseller News Roundtable - in association with Sophos - assessed the making of an MSSP, outlining the blueprint for growth and how partners can differentiate in New Zealand.

The making of an MSSP: a blueprint for growth in NZ
Reseller News Platinum Club celebrates leading partners in 2018

Reseller News Platinum Club celebrates leading partners in 2018

The leading players of the New Zealand channel came together to celebrate a year of achievement at the inaugural Reseller News Platinum Club lunch in Auckland. Following the Reseller News Innovation Awards, Platinum Club provides a platform to showcase the top performing partners and start-ups of the past 12 months, with more than ​​50 organisations in the spotlight.​​​

Reseller News Platinum Club celebrates leading partners in 2018
Meet the top performing HP partners in NZ

Meet the top performing HP partners in NZ

HP has honoured its leading partners in New Zealand during 2018, following 12 months of growth through the local channel. Unveiled during the fourth running of the ceremony in Auckland, the awards recognise and celebrate excellence, growth, consistency and engagement of standout Kiwi partners.

Meet the top performing HP partners in NZ
Show Comments