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
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
While China’s leaders use their economic and political might to fight US President Donald Trump’s trade war “to the end,” its army of social media soldiers are embarking on a more humorous campaign online. Trump’s tariff blitz has seen Washington and Beijing impose eye-watering duties on imports from the other, fanning a standoff between the economic superpowers that has sparked global recession fears and sent markets into a tailspin. Trump says his policy is a response to years of being “ripped off” by other countries and aims to bring manufacturing to the US, forcing companies to employ US workers. However, China’s online warriors
RSS