Asustek Computer Inc (華碩), the world’s No. 5 PC vendor, has prebuilt inventory as part of its efforts to avert cost increases stemming from hefty “reciprocal” tariffs slapped by the US on Asian countries, which house a majority of the world’s PC manufacturing factories.
US President Donald Trump imposed a tariff of 32 percent on imports from Taiwan, 34 percent on China and 46 percent on Vietnam among numerous countries around the world, which took effect yesterday.
Trump on Tuesday increased the punitive tariff on Chinese goods to 104 percent.
Photo: Ann Wang, Reuters
“Asustek is closely monitoring the changes in policy and tariff system to flexibly adjust its inventory management policy, supply chain allocations and pricing strategy,” the company said in a statement on Tuesday, adding that it has strategically prebuilt extra inventories as part of its contingency plans.
In a precautionary move, Asustek boosted stocks at its US hubs during the fourth quarter of last year, the company said.
The US market accounted for 13 to 15 percent of the company’s total revenue last year, while Asia made up 47 percent and Europe 29 percent, the company said.
Asustek outsources most of its own-brand computer production to electronics manufacturing service providers and sources components from a variety of suppliers.
As such arrangements would lead to increases in manufacturing costs, the company might have to pass on the cost increases to end customers, it said.
PC vendor Acer Inc (宏碁) said in February it would raise computer retail prices by 10 percent, as tariff hikes would drive up costs.
Separately, Asustek yesterday reported revenue of NT$64.3 billion (US$1.95 billion) for last month, up 29 percent from NT$49.73 billion a year earlier and marking its best March revenue ever.
Revenue in the first quarter surged 21.36 percent to NT$147.7 billion from NT$121.7 billion the year before, also the best first-quarter performance in the company’s history, Asustek said.
Intel Corp chief executive officer Lip-Bu Tan (陳立武) is expected to meet with Taiwanese suppliers next month in conjunction with the opening of the Computex Taipei trade show, supply chain sources said on Monday. The visit, the first for Tan to Taiwan since assuming his new post last month, would be aimed at enhancing Intel’s ties with suppliers in Taiwan as he attempts to help turn around the struggling US chipmaker, the sources said. Tan is to hold a banquet to celebrate Intel’s 40-year presence in Taiwan before Computex opens on May 20 and invite dozens of Taiwanese suppliers to exchange views
Application-specific integrated circuit designer Faraday Technology Corp (智原) yesterday said that although revenue this quarter would decline 30 percent from last quarter, it retained its full-year forecast of revenue growth of 100 percent. The company attributed the quarterly drop to a slowdown in customers’ production of chips using Faraday’s advanced packaging technology. The company is still confident about its revenue growth this year, given its strong “design-win” — or the projects it won to help customers design their chips, Faraday president Steve Wang (王國雍) told an online earnings conference. “The design-win this year is better than we expected. We believe we will win
Quanta Computer Inc (廣達) chairman Barry Lam (林百里) is expected to share his views about the artificial intelligence (AI) industry’s prospects during his speech at the company’s 37th anniversary ceremony, as AI servers have become a new growth engine for the equipment manufacturing service provider. Lam’s speech is much anticipated, as Quanta has risen as one of the world’s major AI server suppliers. The company reported a 30 percent year-on-year growth in consolidated revenue to NT$1.41 trillion (US$43.35 billion) last year, thanks to fast-growing demand for servers, especially those with AI capabilities. The company told investors in November last year that
Power supply and electronic components maker Delta Electronics Inc (台達電) yesterday said it plans to ship its new 1 megawatt charging systems for electric trucks and buses in the first half of next year at the earliest. The new charging piles, which deliver up to 1 megawatt of charging power, are designed for heavy-duty electric vehicles, and support a maximum current of 1,500 amperes and output of 1,250 volts, Delta said in a news release. “If everything goes smoothly, we could begin shipping those new charging systems as early as in the first half of next year,” a company official said. The new