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Asus confirms three-way split

Taiwanese PC maker says it has spun off the company into three entities--Pegatron, Unihan and Asus--to boost its own brand and remove conflict of interest.
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Written by Victoria Ho, Contributor on

Asustek has confirmed plans to split the company in a bid to grow its own brand and augment contract manufacturing business.

The Taiwanese PC manufacturer, and world's largest motherboard manufacturer, announced it has split into three entities: Pegatron, Unihan and Asus. The move will allow Asus to focus on building and promoting its own brand, according to news reports.

Both Pegatron and Unihan will reportedly take care of contract manufacturing, with Pegatron focusing on PC components such as motherboards, and Unihan concentrating on casing and other non-PC products.

The split, Asustek said, is the company's attempt to cultivate its own brand by removing any conflict of interest between its contract manufacturing business and production of Asus-branded computer systems.

Asustek had previously announced plans to split its business in July last year, but did not specify a date then.

According to various news reports, Asustek reportedly said: "[We are] aiming to boost our branded and contract manufacturing businesses. Therefore, we are actively restructuring and dividing our work forces based on expertise to increase overall competitiveness."

Other reports carried news that the company's employees had their pensions paid out on Jan. 1 this year, the official separation date, and will start their tenure--with the respective newly-separated entity--from scratch.

Specific plans for Asustek's Asia-Pacific offices are still unclear. When contacted, a company spokesperson told ZDNet Asia details will only be available at a later date due to "internal issues".

Another Taiwanese PC manufacturer Acer, had also attempted to elevate its image above that of a contract manufacturer, through a merger with American PC maker, Gateway. Analysts have said the agreement could help Acer raise its profile amongst consumers.

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