Asustek Computer Inc (華碩) yesterday said it is building a server assembly line in the US to facilitate shipments of the large machines to customers in the region, as it seeks to tap into the rapidly growing artificial intelligence (AI) server market.
The efforts came three months after the company unveiled a grand strategy to accelerate its expansion into servers and artificial intelligence of things (AIoT) to explore new growth engines to drive revenue and profit.
The company has set an ambitious target to grow its new server business by 500 percent in the five-year period to 2027.
Photo: CNA
Asustek on Monday said that it was on track to reach that goal, given its long-standing partnership with Nvidia Corp and its advantages in component sourcing.
The company has activated a special project to build server assembly lines in San Francisco to supply its US clients, given the challenges of shipping such hefty machines, Jackie Hsu (許祐嘉), co-head of Asustek’s Open Platform Business Group and AIoT Business Group, said in a statement, confirming Nikkei Asia’s report.
It is also considering building server assembly capacity in regions beyond the US, said Hsu, who also oversees the new server business.
Asustek said it has secured a significant amount of orders to supply AI servers to clients in Vietnam, India and Singapore, thanks to its partnership with Nvidia.
As the AI server business is still in its infancy, Asustek expects the business to account for a low-single-digit percentage of the company’s total revenue next year. The revenue contribution would increase to a double-digit percentage in 2025 based on the company’s preliminary estimate.
Separately, Lenovo (聯想) has filed a lawsuit in California federal court, alleging that Asustek has infringed its patent, Reuters reported yesterday.
Hong Kong-based Lenovo said Asustek’s Zenbook laptops illegally used four of its patents related to wireless communications, diagonal touchpad scrolling and a hinge that allows laptops to convert to a tablet configuration, the report said.
Asustek said it cannot comment on the lawsuit, but it would comply with the law to safeguard the company’s interests.
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