Asustek hopes new ops center will speed PC production

With a planned operations center closer to its suppliers in China, Asustek hopes to speed PC production and cut costs

Asustek Computer will set up an operations center in southwest China by 2015 to manage manufacturing by contractors of up to 20 million Asustek notebook and tablet PCs a year, the company said on Friday. The move could streamline production and keep prices low for consumers in Europe, China and other parts of Asia.

Staff at the center will arrange local contracts and coordinate logistics to get PCs to markets around Europe and Asia, a spokesman for the Taiwanese company said.

The new center in Chongqing will put Asustek closer to contractors and suppliers that have congregated in the same region, and should help the Taiwanese manufacturer compete on cost and production speed, an analyst said.

"That location allows Asustek to be more flexible, more nimble, and keep the inventory of parts down," said David Wolf, CEO of Wolf Group Asia, a technology consultancy in Beijing. "They can do just-in-time orders whenever they're ready."

The firm will open its US$150 million center in the city of Chongqing, a manufacturing hub with relatively cheap land and a stable rather than migratory labor force.

Government officials have for years encouraged foreign firms to locate in western China to speed its development, offering in some cases breaks on taxes and land prices. Chongqing municipal leaders have spearheaded much of the technology growth of this city with a population of 31 million.

Asustek's expanded presence in China also will help it ship tablets quickly and cheaply to the huge, increasingly wealthy local market. The company expects to sell 1.5 million to 2 million tablets worldwide in 2011, controlling about 10 percent of the non-iPad tablet market, it said in February.

Asustek has also said that its production of netbooks, a market it pioneered in 2007 with the Eee PC 700, will remain unchanged this year as its tablet shipments grow to about 2 million.

Market research firm DisplaySearch estimates that 56 million tablets will be produced in 2011, up more than 200 percent over 2010 shipments. In China, iPads have been on shelves for about seven months.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags hardware systemstablet PCslaptopsAsustek Computer

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Ralph Jennings

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?