Asus Outsources Motherboard Production to Flextronics
August 24, 2005
Asus will for the first time outsource 20% of their motherboard production to Flextronics' plant in Southern China. Flextronics will also assemble desktop PCs for Asus at sites throughout the world. While in the short term the move will help Asus address a capacity shortage during the peak season, the partnership underscores Asus's gradual cut-back in motherboard capacity expansion and increasing focus on its 3C branded business. An extended partnership between the two companies would not only give Asus a boost in on the logistics end of the chain, but Flextronic's manufacturing capabilities will also provide Asus with substantial scale advantages in other components, such as cases.