ASUS Spins Off Motherboard and GPU Making

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ASUS, whose brand recognition seems to be on a non-stop rise, has decided it’s time to fight fire with fire as it prepares to battle HP and Dell for consumer PC supremacy.  The ASUS name, which is rapidly becoming known for their laptops, netbooks and desktops, is changing, being reserved for the computer side of the business alone. 

ASUS, the biggest brand of parent company Asustek, is responsible for much more than just the end products themselves, however, as they are a primary source of basic computer components like motherboards and graphics cards.  These items will be spun off and operate under the name of Pegatron, one of their lesser-known brands.  The process is expected to be complete by summer of next year.  ASRock, which is one of ASUS’ brand names of both nettops and components, will travel along with Pegatron to the new subsidiary.

ASRock is expected to ship more than seven million motherboards this year, which puts the company in direct competition with MSI for the world’s #3 motherboard maker.  ASUS, despite the close relationship the companies will undoubtedly share, will actually reduce the number of motherboards it sources from Pegatron (actually a fairly substantial drop of 50% currently to 30% or so).  Even though Pegatron and ASRock will primarily be component makers, the new company will leverage its brand power and production capabilities to sell a fairly wide range of netbooks, notebooks, nettops and all-in-ones, which will put them in direct competition with their former compatriots at arms.




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