ASUS withdrawing from mobo manufacturing

Tagged: Asus Motherboard, Computer Hardware
Source: guru3d.com - Read the full article
Posted: 4 years 41 weeks ago

No before you start to stress -- it simply means that motherboard manufacturing would become outsourced rather then self (in-house) made. Anyway, xbitlabs is reporting that Asustek decided to completely spin off its mainboards and graphics cards manufacturing arm Pegatron Technologies, the company said this week.

The move will allow Asus to become more competitive in terms of branding, but will further withdraw the firm from the actual manufacturing. According to a statement posted with Taiwan Stock Exchange, Asustek company had convened a board meeting to resolve the spin-off of its ODM business. As a result of the meeting, Pegatron Holding, the company that made virtually all Asus-branded motherboards, will issue two billion new shares to a number of shareholders.

Asustek Computer and all shareholders of the company as consideration, among which it is expected that the company will receive 25% of the equity and all shareholders of the company will in total receive 75% of the equity in Pegatron Holding in proportion to their shareholdings in the company.

As a result of the move, Asus-branded mainboard are likely to be targeted not only on the highest possible quality market, but also onto performance mainstream segment. The question is what can a premium brand offer in the value segment?

 

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Manic Mouse
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Sad.

Yet another major hardware company turning over their production to Foxconn. That's too bad. Asus was one of the few motherboard companies left that distinguished itself by making their own motherboards rather than playing the 'me too' game and outsourcing it to Foxconn (the world's largest motherboard manufacturer).

I mean lets face it, why buy from this future Asus if you can go straight to the producer (foxconn) and buy your hardware straight from the *real* maker? Why bother with a middleman?

I hope Gigabyte doesn't follow this trend.

Mark Baker

Gigabyte Z79X-UD5H, Intel i7 4790K @4.4Ghz (stock speed), 32gb G.Skill RipjawsZ 10-10-10-30 PC3-12800, Sapphire HD 7950 3GB, OCZ Vertex 4, Vertex 3, Intel 510 & Adata SSDs, wrapped in a CoolerMaster HAF XM case

Andreas Hofer
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To Answer that just take a look at their subsidiary ASRock Ltd. Established a few years ago to target the low budget region of the market. Both, Asus and ASRock, have the same quality and mostly even have the same features. ASRock boards are just not so good for overclocking, may lack the newest chipsets and may also not have that many interfaces available. Overall that segment has already been covered.