Tue, Aug 23, 2005 - Page 10 News List

Flextronics hired to make motherboards

BLOOMBERG

Asustek Computer Inc (華碩電腦), the nation's largest maker of boards that connect personal-computer chips, said it has hired Flextronics International Ltd to make motherboards.

Asustek declined to comment on an Economic Daily News report yesterday saying the company has farmed out desktop computer orders to Flextronics as part of an alliance.

"Asustek has a good standing relationship with Flextronics for making motherboards," deputy financial director David Chang (張偉明) said.

The cooperation will make up for Asustek's production shortfalls during the peak season and help utilize Flextronics's global logistics capability, the paper said.

Asustek, which is the world's largest maker of motherboards, is expected to ship 52 million of the components this year, more than 30 million of which will be own-brand boards. The company plans to let Flextronics produce about 20 percent of its motherboards.

Flextronics is Hon Hai Precision Industry Co's (鴻海精密) biggest rival. Taiwan's trade council last year helped Singapore-based Flextronics arrange meetings to find local business partners.

Hon Hai Precision chairman Terry Gou (郭台銘) has criticized the Taiwanese government for using taxpayers' money to help the company's rivals. Gou said he may withdraw investment from Taiwan, the Commercial Times reported on Feb. 6 last year.

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