Asustek Computer, one of the world’s largest producer of electronics, late on Monday revealed plans of its split into three companies that will become effective on the 1st of January, 2008. The move will allow the company to avoid conflicts with its contract manufacturing customers and will also catalyze the growth for the whole business group.
“Asustek is aiming to boost our branded and contract manufacturing businesses. Therefore we are actively restructuring and dividing our work forces based on expertise to increase overall competitiveness,” an Asustek official is quoted as saying by Reuters news-agency.
Asustek Computer will continue to operate its brand business, which involves a broad lineup of products, including computer mainboards and add-in-cards, notebooks and smartphones, servers and communication equipment as well as multimedia and consumer electronics devices. The newly formed Unihan Technology Corp. will produce PC-related devices, such as mainboards and add-in-cards, whereas the newly created Pegatron Technology Corp. will produce computer cases, various modules as well as take over non-PC contract manufacturing business.
“We think this will boost our competitiveness in each area,” Jonney Shih, chairman of Asustek, is reported to have said by IDG News Service agency.
The head of Asustek was also quoted as saying that the goal for Asustek’s consolidated revenues for 2007 is NT$750-800 billion ($22.8 - $24.3 billion), of which NT$250 billion ($7.6 billion) will come from brand-name business, reports DigiTimes web-site. The businesses to be included in Pegatron are expected to generate NT$300-350 billion ($9.1 - $10.65 billion) this year, and those to be taken over by Unihan will generate NT$150-200 billion ($4.56 - $6 billion).
Back in 2001 a similar move was performed by Acer Corp., currently one of the world’s largest suppliers of personal computers. The firm split up into three units: Acer remained in the PC business, BenQ streamed into the consumer business, whereas Wistron became one of the largest contract manufacturers on the globe.