|
|
|
|
Asustek to Split Branding and Contract Manufacturing Operations
|
|
|
|
| 13 June 2007 |
|
|
|
|
Asustek Computer Inc., one of Taiwan`s leading manufacturers of information-technology devices, has resolved to split its operations of branding and contract manufacturing operations earlier than expected.
According to the Taiwan Economic News, Asustek Chairman Johnny Shih said his company will take actions to separate operations of branding from those of contract manufacturing as soon as possible. Asustek originally set a timetable in 2008 to split the operations of the two business lines.
Shih said his company would take the models of Acer Inc. and Wistron Corp. to split the operations of branding and contract manufacturing in a thorough way.
In the foreseeable future, Asustek will concentrate on branding business while creating a new company to contact manufacture such main products as notebook personal computers and motherboards. The Asustek move is aimed at challenging the status of Hon Hai Precision Industry Co.`s No.1 position in the EMS (electronic manufacturing services) arena.
All the procedures to split the branding and contract manufacturing operations will be done by the end of this year. The proposed new company will be listed on the Hong Kong Stock Exchange.
At present, Asustek is reportedly the world`s largest manufacturer of own-brand motherboard. In terms of production of own-brand notebook personal computers, Asustek stands at the ninth place worldwide.
Shih noted his company will demonstrate its high capability in contract manufacturing after splitting the branding and contract manufacturing operations.
Over the past few years, Asustek has seen mounting pressure from customers because of the conflict in the operations of branding and contract manufacturing.
After hitting a historic high record of NT$88 billion ($2.66 billion at $1:NT$33) in sales in March, Asustek saw monthly decline to less than NT$50 billion ($1.51 billion) in May because of the lost in orders, which has pushed the company to take earlier action to split the operations of branding and contract manufacturing.
Source: Taiwan Economic News |
|
|
|
|
