Asus to Split the Company In Three Entities

Back in July, Asus announced that the company will be divided into two different entities, that will allow it to separate Asustek's branded business from its manufacturing operations. Back then, worldwide analysts totally agreed that the move is for the company's best. The split is effective as of the first day of the year.

"It should be positive to the company," stated Jerry Chang, product development manager at National Investment Trust, Taiwan, back then. Asustek's employees think the same and consider that the change is for the common better, as motherboard market has already reached a peak.

The corporate executives have been the greatest supporters of the split. The ex-technological giant is now divided into three units. The component manufacturing division is called Pegatron and takes care of all motherboards and PC-related products. The second division, called Unihan, is in charge with the chassis and sub-component manufacturing, while ASUS, the third company, will exclusively manufacture notebooks and complete computing systems.

Asustek has just confirmed that the split has been produced. "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."

The company's employees have received their pensions in the first day of the year – the official date for the separation – and will start their tenure from scratch at the corresponding division. It may seem illegal as far as the US law is concerned, but the Taiwanese companies do not offer any pension plans.

Asustek's move may resemble the Gigabyte United merger between ASUS and Gigabyte. In fact, Asus can sell out its OEM business in order to shift its focus to the ASUS brand, but the Taiwanese company considers that it's for its best to keep the retail and OEM business separate.

Not long ago, another Taiwanese company tried to focus on the brand: PC manufacturer ACER acquired Gateway, and this move might help Acer increase its presence over the market.

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