Asustek Computer Inc (華碩電腦) yesterday announced plans to form a strategic alliance with Portwell Inc (瑞傳科技) to jointly build an embedded foundry to accelerate its development in the artificial intelligence of things (AIoT) industry and advancement of related applications.
Under the partnership, Asustek is to purchase a 30 percent stake in industrial PC maker Portwell for NT$1.5 billion (US$52.85 million), it told a news conference at the Taiwan Stock Exchange.
Asustek said the deal would close by the end of this quarter, and it might purchase another 15 percent of Portwell shares after a year.
Photo: CNA
That would raise its stake to 45 percent, as the two sides aim to deepen their cooperation as well as help Portwell return to the capital market, it said.
Portwell is a wholly owned subsidiary of Posiflex Technology Inc (振樺電子), a point-of-sale terminal brand that acquired Portwell in July 2017 for NT$4.6 billion.
It produces and designs industrial computers, embedded computing solutions, as well as mobility and barcoding accessories specializing in customized solutions.
The company has research and development (R&D) and manufacturing facilities in Taiwan and the US, and assembly lines in the Netherlands and Japan.
“Using Portwell’s embedded foundry and connections to key customers as foundations, Asustek will leverage this strategic alliance to integrate design, R&D and manufacturing needs in the industry and offer rapid, highly flexible, customized, high-quality and cost-competitive solutions,” Asustek said in a statement.
Portwell’s revenue was about NT$6 billion last year, Posiflex spokeswoman Rita Hsu (徐瑞妤) said, adding that its revenue grew by double-digit percentages from 2017 to 2019, and operating margin was more than 10 percent.
Asustek said it plans to nominate senior vice president Jackie Hsu (許佑嘉) and corporate vice president Albert Chang (張權德) to sit on the board of Portwell. The two are coheads of Asustek’s AIoT business group.
“They will participate in operations management, and cooperate with Portwell’s operations team and the Posiflex global corporate office to rigorously develop the AIoT business,” Asustek said in the statement.
The AIoT business group was formed in late 2019.
In 2018, Asustek chairman Jonney Shih (施崇棠) promised to make AIoT the core business of the company and boasted of preparing a NT$10 billion war chest to achieve this goal, the Chinese-language Business Next reported on its Web site.
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