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Asus Ventures into U.S. Server Production Amid AI Demand Surge

Taiwan's Asustek pioneers U.S. server production, eyes AI boom, and boosts smart manufacturing, challenging a flat PC market
Taiwan
a 2357.TW Mid and Small Cap 2000 Tech 350
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Asustek Computer, the world’s fifth-largest computer maker renowned for its Asus brand, initiates U.S. server production, seizing opportunities in the AI-powered equipment surge. The move aligns with a broader strategy, ramping up mini PC and smart manufacturing divisions to counter a sluggish consumer electronics market. Jackie Hsu, Asustek’s Senior VP, disclosed the Silicon Valley U.S. production project, assembling semi-finished server components, set to commence by early 2024. This strategic move aims to enhance proximity to North American customers, facilitating business development.

Simultaneously, Asustek plans a manufacturing site in Taiwan, focusing on in-house production for key product lines, including motherboards, graphics cards, mini PCs, and servers. The company evaluates potential assembly production in Europe to meet customer demands. Asustek aspires to grow its server business by 500% in five years, targeting the AI boom by integrating AI chips and graphics processors for parallel computing. This expansion mirrors competitors like Quanta Computer, addressing the escalating demand for servers in California.

In a corporate transformation, Asustek reenters production, emphasizing smart manufacturing solutions. The move follows a technology license deal with Intel, merging NUC computing business into Asustek’s mini PC division. As the global PC market faces a 13% decline in 2023, Asustek leverages the mini PC sector’s growth, popular in consumer gaming and diverse industries, outpacing overall market trends.

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