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New start, strong expectations

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ADVANSUS Computer announces the establishment of the company in January 2006. Advansus Computer Co. is a joint venture between ASUSTeK and Advantech , based on an alliance agreement signed in September 2005.

The initial paid-in capital of Advansus is NT$100 million with ASUSTek and Advantech holding 50 percent of the shares each. The company is expected to be fully operational from April 2006.

Leveraging the two companies’ complementary core competencies, Advansus will develop the high-GP, mid-volume design and manufacturing service (IC - D&MS) business in industrial computing.

Advansus Computer, which will set up its headquarter in ASUSTek’s Tao-Yuan plant, will start with two business units. The first will focus on industrial servers, storage and notebooks targeting Tier-1 D&MS customers. The second business unit will focus on industrial motherboards and rugged tablet/handheld devices targeting mid-to-small D&MS customers.

Advantech will become Advansus’ selling arm for its standard products under Advantech’s brand name. Advansus will purchase part of ASUSTek’s Tao-Yuan facilities and build its own manufacturing capabilities, starting from April.

By end 2006, Advansus is expected to have 100 indirect employees, as well as the core manufacturing capabilities from ASUSTek’s Tao-Yuan facilities.

In 2010, Advansus expects to achieve NT$15 billion sales with 10-15 percent+ after tax net profits.

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