Asus speeds up plans to spin off manufacturing

TAIWANESE GIANT Asustek will move faster than expected to separate its contract manufacturing business from its brand name activities.

The Taiwan Economic News reported that it will create a separate contract manufacturing unit by the end of the year and then take on competitors such as Foxconn-Hon Hai in an attempt to become numero uno.

The paper reported chairman Jonney Shih as saying that the firm is likely to achieve revenues of between $22 billion and $24 billion this financial year, despite delivering not as many Sony Playstation 3s as it expected.

But a spun off Asus contract business faces a tough fight against Hon Hai and Flextronics, and is currently number three in that business, according to the report. Asus is likely to expand its operations to create factories in India, Vietnam and Brazil. µ

L'INQ
Taiwan Economic News