Asustek to spin off contract manufacturing

— 2:38 PM on July 3, 2007

January of next year will see Taiwanese manufacturing giant Asustek split into three separate businesses, according to a report by Reuters. Asustek says it plans to spin off its contract manufacturing activities into two businesses: Pegatron, which will make PC hardware, and Unihan, which will reportedly focus on "casing, modules and non-PC goods." Asustek will live on as a company focused on the retail side of things, so nothing should change for hardware enthusiasts and the like. Asustek intends to gradually lower its stake in Pegatron and Unihan, so the two businesses should gain a modicum of independence.

Reuters quotes analysts as saying the move should have a positive outcome for Asustek, as it will reportedly allow the firm to "focus on developing consumer markets without having to worry about manufacturing."

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