Asus to Divide in 2008 – Media Report

by Anton Shilov
10/17/2006 | 05:25 AM

Asustek Computer, one of the world’s largest makers of computer parts, reportedly plans to reorganize itself and to split into two companies in about two years time. The move has been discussed for months now and is aimed at making Asus one of the globe’s leading brands while avoiding conflict of interests with the company’s contract manufacturing business.

The motherboard giant is expected to spin off its own-brand and contract manufacturing divisions in 2008, according to DigiTimes web-site. Earlier it was reported that Asustek’s own-brand operation will become an independent company with headquarters in Singapore and listed on New York Stock Exchange (NYSE). The remaining contract manufacturing division, which produces various components is projected to remain in Taiwan.

For years Asus’ business has been moving into different directions. On the one hand the company’s mainboard, notebook and graphics cards products are getting more and more popular. On the other hand, the company has been very successful manufacturing products for companies like Apple Computer, Sony Computer Entertainment Inc. and others. As two independent companies the manufacturing and brand-oriented businesses are likely to be more successful than as fully integrated company.

While Asus in known among computer users, general public in Europe and the U.S. may not be familiar with Asustek, as the company’s products can be mostly located inside personal computers that may carry whatever brand-name. In order to become a company more familiar with the general public, the company plans to continue increasing production of own-brand notebooks and become one of the world’s top 5 laptop suppliers. The company now plans to reorganize its notebooks division, reports the web-site.

Asustek has been consistent in denial the spin off rumours.