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Electronics Production | July 04, 2007

Asustek splits its EMS operation

Asustek Computer Inc. will split from its contract-manufacturing operation and reorganize itself into two independent companies named Pegatron and Unihan.
The separation will help end the conflict of interest between the company's brand-name and EMS-operations. Many of Asustek's contract buyers had become reluctant to place outsourcing orders since Asustek began promoting brand names.

Asustek will continue to fully own Pegatron and Unihan. The two manufacturers will not rule out the possibility of combining them into one. Initially, the two manufacturers will offer computer-manufacturing service and manufacturing service of non-computers. Asustek will contract the two manufacturers to make all of its branded products at the start.

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