Asustek Computer, currently the world’s largest supplier of mainboards, may outsource parts of its own-brand motherboards and mobile computers after the company splits into three in early 2008. The companies that are rumoured to land those orders are currently two serious rivals of the company.
As a result of the recently unveiled business development strategy, Asustek Computer will be split into three separate companies each targeting their own directions. 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.
The new strategy means that Asustek itself can outsource production not only to Unihan or Pegatron, but also to third-party makers, whereas the spin-off units will concentrate on landing as many orders as they can from suppliers like Dell or Sony. The new plan is projected to eliminate conflict of interests that arises because of competition between Asus-branded products and devices that the company makes as a contract manufacturer.
A report in Chinese-language Economic Daily News (EDN), which was partly translated by DigiTimes web-site, claims that Quanta may become the first original equipment manufacturer for Asustek’s own-brand notebook, while Asustek is also considering outsourcing own-brand motherboards to Foxconn Electronics. It is reported that Asustek does outsource 20% - 30% own-brand mainboards during peak season to other makers, though, it is highly unlikely that until now the company has outsourced to Foxconn Electronics, which is currently one of the most serious competitors of Asus.
Neither Asustek Computer, Foxconn Electronics or Quanta commented on the news-story.