Laptop maker Asustek Computer Inc (華碩) yesterday said it was unable to keep up with demand for its low-cost Eee PC series primarily as a result of limited battery supplies, but said it would retain its shipment target of 5 million units for this year.
As Asustek cannot produce enough units to meet demand for the low-cost laptop, it is forced to put its plan of introducing the product into more markets temporarily on hold, said Lillian Lin (
Asustek sells the Eee PC series in most Asian countries and parts of Europe including Germany and Britain.
"Batteries are the main factor. Most notebook makers have been affected by [the factory fire at supplier] LG. We are working on it," Lin said.
Lin made the remarks on the sidelines of a product launch for the company's Microsoft Windows Eee PC, which went on sale in January in Japan.
Prices for the Windows Eee PC start at NT$12,499 for a model with a 4 gigabyte solid state drive (SSD). Prices for Eee PCs running Linux and equipped with a 2 gigabyte SSD start at NT$7,999.
Lin declined to say whether Asustek would miss its target of shipping 700,000 Eee PCs in the first quarter as a result of the battery problem.
A fire halted battery production at a LG Chem Ltd plant earlier this month. LG is South Korea's No.2 notebook battery maker.
Asustek chairman Jonney Shih (
The goal to ship 5 million units is still achievable as growth momentum is quite strong, Shih said.
In June, Asustek plans to unveil a next-generation Eee PC with an 8.9-inch liquid-crystal-display (LCD) screen in Taiwan, the company said.
The larger-screen Eee PC will come in both Linux and Microsoft versions, it said.
"People are recognizing the growing need for a second laptop to get online easily and enjoy digital life. This is an important trend," Shih said. "We hope to create a new market that could become another NT$1 billion market."
Commenting on the US subprime credit crisis, Shih said that the impact for Asustek would be very limited because of its small presence in the US.
The company's biggest markets for its brand business are in Europe and Asia.
Shih said that although many Taiwanese electronics manufacturers were setting up operations in Vietnam, Asustek was betting on India, where it said market growth could see a sudden explosion.
"India has growth potential similar to what China's used to be," he said.
To increase its understanding of the Indian market, Shih said he had made a six day visit to the country last week, where Asustek has set up a branch with more than 100 staffers in Mumbai.
Asustek shares declined for the fourth trading session in a row to close at NT$87.7 yesterday.
NOTABLE SHIFT: By 2030, 50% of all laptops would be assembled in Southeast Asia, while Taiwan would still mostly focus on research and development, a report said Global laptop and desktop computer supply chains are expected to shift significantly away from China in the next 10 years, a Market Intelligence & Consulting Institute (MIC, 產業情報研究所) report said. By 2030, only 40 percent of global laptop production would remain in China, said the report, which was released on Thursday. “The reshuffling of the global supply chain will be one of the most important trends in the next 10 years,” the institute said in the report. “In the long run, key component makers will follow laptop assemblers in moving out of China.” The Taipei-based institute predicted most key component makers
Merck Group Taiwan yesterday said that it plans to invest substantially on expanding its fab in Kaohsiung’s Lujhu District (路竹) to better serve its local customers, including Taiwan Semiconductor Manufacturing Co (TSMC, 台積電). The company said it plans to expand its production space by 50 percent in the next five years and its workforce by about 40 percent, Merck Group Taiwan managing director Dick Hsieh (謝志宏) told a media briefing in Taipei. Hsieh declined to disclose investment details, but said that the latest investment would exceed the total amount Merck has invested in Taiwan over the past few years. Those investments would be
Yageo Corp (國巨), the world’s third-largest supplier of multilayer ceramic capacitors, has formed a strategic alliance with Hon Hai Precision Industry Co (鴻海精密) to develop key electronic components for electric vehicles and digital healthcare, it said yesterday. The alliance is to help Yageo boost its revenue from high-end components for vehicles and industrial, medical and aerospace devices, as well as those used in 5G and Internet-of-Things devices, the company said. The companies signed the strategic alliance agreement at Yageo’s headquarters in New Taipei City’s Sindian District (新店). Their cooperation is to start this quarter, the companies said in a joint statement. “Through the cooperation
INVEST IN TAIWAN: A metal components casting firm and the world’s largest maker of aluminum bicycle rims also obtained approvals to join the program Solar Applied Materials Technology Co (SOLAR, 光洋應用材料), a part of Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) “green supply chain,” has pledged to invest NT$1 billion (US$34.1 million) to build a new plant at the Tainan Technology Industrial Park (台南科技工業區), the Ministry of Economic Affairs said yesterday. SOLAR has been collaborating with TSMC to extract precious metals from waste and reuse them as “sputtering target” material in high-end semiconductor manufacturing, a TSMC press release issued in May said. Established in 1978, SOLAR also offers key materials and integrated services to customers in the optoelectronics, information and communications technology, petrochemicals and consumer electronics industries,
RSS