Fresh Growth Catalysts: Asustek Expands AI-Powered Server Production in the US
Summary
Asustek Computer, the world’s fifth-largest computer maker, is venturing into new territory by building a server production line in the US. This move comes as Asustek aims to capitalize on the increasing demand for artificial intelligence-powered equipment. The company, renowned […]
Asustek Computer, the world’s fifth-largest computer maker, is venturing into new territory by building a server production line in the US. This move comes as Asustek aims to capitalize on the increasing demand for artificial intelligence-powered equipment. The company, renowned for its Asus brand, also intends to expand its mini PC and smart manufacturing businesses.
According to Jackie Hsu, senior vice-president of Asustek, the rise of AI-powered computing presents a golden opportunity to attract more customers. Asustek has initiated its US production project in Silicon Valley, where it plans to assemble semi-finished parts for its expanding server system business. This strategic location will allow the company to cater to its customers in North America more effectively. Production is scheduled to commence by early 2024.
Asustek recognizes the importance of being close to its target market. Hsu explains that having manufacturing capacity in proximity to customers will facilitate business development. Clients seeking server solutions often prefer suppliers with nearby production capabilities.
Furthermore, Asustek is establishing a manufacturing site in Taoyuan, Taiwan, to produce motherboards, graphics cards, mini PCs, and server-related products. This facility is also expected to commence production in 2024. Additionally, the company is evaluating the possibility of setting up assembly production in Europe and other locations to meet customer demands.
While Asustek aims to achieve a significant expansion in its server business, it is adopting a prudent approach. The company plans to have in-house production only for key product lines, including servers, connected devices, and mini PCs. Asustek is not seeking massive production footprints but instead intends to demonstrate the effectiveness of its smart manufacturing solutions in its own plants.
FAQ:
Q: What is Asustek Computer?
A: Asustek Computer is the fifth-largest computer maker globally, renowned for its Asus brand.
Q: Where is Asustek building its server production line?
A: Asustek is constructing its server production line in the US, specifically in Silicon Valley.
Q: When will production commence for Asustek’s US server production project?
A: Production is set to start by early 2024.
Q: What other manufacturing sites is Asustek establishing?
A: Asustek is also building a manufacturing site in Taoyuan, Taiwan, for the production of various products, including motherboards, graphics cards, mini PCs, and server-related products.
Q: What is Asustek’s approach to production expansion?
A: Asustek plans to have in-house production only for key product lines, such as servers, connected devices, and mini PCs.