Electronics Production | June 11, 2007
Asustek targets EMS Sector
Taiwanese Asustek Computer Inc., plans to split its operations of branding and EMS-operations. The split was earlier planned to be done in 2008, however the turbulence in the EMS-sector at the moment has pushed Asustek to proceed with the split as soon as possible.
Asustek would take the models of Acer Inc. and Wistron Corp. to split the operations of branding and contract manufacturing in a thorough way, CENS reports. Asustek plans to concentrate on branding business while creating a new EMS company. The Asustek move is aimed at challenging the status of Foxconn's No.1 position in the EMS sector. Johnny Shih, chairman of Asustek noted the 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, according to CENS.