Analysts yesterday rebuffed Asustek Computer Inc's (華碩電腦) recent decision to expand into the handset manufacturing sector.
"Asustek is too late for the market," said Stanley Chou (
"Other Taiwanese notebook makers have already been shipping handsets for years and now have solid relations with foreign cellphone companies," Chou said.
In late 1990s, the nation's major notebook PC makers including BenQ Corp (
Yesterday, Chinese-language media reported that Asustek is slated to launch its own cellphone brand in August. The company also hopes that within the next five years, cellphones will make up 33 percent of its total sales, the report said.
Motherboard manufacturing is Asustek's core business, amounting to over 50 percent of the its sales, followed by computers at 20 percent. The remaining 30 percent comes from optical-disk drives, graphics chips and the manufacturing of Sony's PlayStation2.
Asustek, nevertheless, said that they have done their homework and are ready to move into the manufacturing of wireless devices.
"We've worked on handset-manufacturing technology for some time and we will have our commercial launch this year," said Chen Shun-ping (
At the Cebit trade fair in Hannover, Germany, Asustek showcased two generic handset models -- a middle-tier, color-screen phone and an entry-level black-and-white screen mobile phone.
Fierce competition will make it difficult for the Asustek venture to pay off in the short term.
"Asustek is unlikely to profit from its wireless business within the next three years," said Molly Lin (
Since handset competition is already tough, the barrier to new entrants is definitely high, she said.
Chou said that Asustek has to sell its own handsets because it can't receive orders from companies such as Nokia and Motorola, who already have strong ties with other local manufacturers.
"Major foreign cellphone companies have already found local partners and these relations are unlikely to change," Chou said.
Taiwanese handset makers BenQ, Compal, GVC Corp (致福) and Arima produce handsets for Motorola Inc and Sony Ericsson on a contract basis. Hon Hai Precision Industries Co (鴻海精密) also works closely with Nokia in making cellphone casings and printed circuits.
"Asustek may only be able to receive handset orders from China-based companies," Chou said.
Taiwan will prioritize the development of silicon photonics by taking advantage of its strength in the semiconductor industry to build another shield to protect the local economy, National Development Council (NDC) Minister Paul Liu (劉鏡清) said yesterday. Speaking at a meeting of the legislature’s Economics Committee, Liu said Taiwan already has the artificial intelligence (AI) industry as a shield, after the semiconductor industry, to safeguard the country, and is looking at new unique fields to build more economic shields. While Taiwan will further strengthen its existing shields, over the longer term, the country is determined to focus on such potential segments as
UNCERTAINTY: Innolux activated a stringent supply chain management mechanism, as it did during the COVID-19 pandemic, to ensure optimal inventory levels for customers Flat-panel display makers AUO Corp (友達) and Innolux Corp (群創) yesterday said that about 12 to 20 percent of their display business is at risk of potential US tariffs and that they would relocate production or shipment destinations to mitigate the levies’ effects. US tariffs would have a direct impact of US$200 million on AUO’s revenue, company chairman Paul Peng (彭雙浪) told reporters on the sidelines of the Touch Taiwan trade show in Taipei yesterday. That would make up about 12 percent of the company’s overall revenue. To cope with the tariff uncertainty, AUO plans to allocate its production to manufacturing facilities in
COLLABORATION: Given Taiwan’s key position in global supply chains, the US firm is discussing strategies with local partners and clients to deal with global uncertainties Advanced Micro Devices Inc (AMD) yesterday said it is meeting with local ecosystem partners, including Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), to discuss strategies, including long-term manufacturing, to navigate uncertainties such as US tariffs, as Taiwan occupies an important position in global supply chains. AMD chief executive officer Lisa Su (蘇姿丰) told reporters that Taiwan is an important part of the chip designer’s ecosystem and she is discussing with partners and customers in Taiwan to forge strong collaborations on different areas during this critical period. AMD has just become the first artificial-intelligence (AI) server chip customer of TSMC to utilize its advanced
Chizuko Kimura has become the first female sushi chef in the world to win a Michelin star, fulfilling a promise she made to her dying husband to continue his legacy. The 54-year-old Japanese chef regained the Michelin star her late husband, Shunei Kimura, won three years ago for their Sushi Shunei restaurant in Paris. For Shunei Kimura, the star was a dream come true. However, the joy was short-lived. He died from cancer just three months later in June 2022. He was 65. The following year, the restaurant in the heart of Montmartre lost its star rating. Chizuko Kimura insisted that the new star is still down
RSS