Asus splits into three

Asustek seeks to continue growth by splitting the company into three

Stuart Turton
4 Jan 2008

Asustek is to split into three distinct companies, separating its branded products from its contract manufacturing operations.

The reorganisation will see Asustek's own brand products, including the Eee PC, continue to operate under the Asus name, while contract manufacturing operations for suppliers like Apple will be handled by the newly formed Unihan Technology Corp.

Any non-PC contract manufacturing for devices like smartphones, will be handled by Pegatron Technology Corp.

The move follows months of speculation, as Asustek increasingly reinvents itself as a major PC vendor. However, this has drawn the ire of its industry customers which are wary of a company that acts as both a supplier and a competitor.

Asustek believes that by splitting into three it can placate existing customers, and free up the Asus brand for further growth.

If approved by regulators, the changes will take place in January.

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