Asustek to cut all ODM motherboard production ties with Pegatron

Sources at component makers told DigiTimes that Asustek plans to decrease ODM (original design manufacturer) production of motherboards by Pegatron beginning mid-2012 and completely end their ODM relation by the end of Q3 2012. Asustek reportedly intends to contract Thailand-based Cal-Comp Electronics, and Taiwanese firms Global Brands Manufacture, Info-Tek and Elitegroup Computer Systems (ECS) to produce its motherboards.

And Elitegroup Computer Systems (ECS) undertake ODM motherboard production, the sources indicated. ECS has been an ODM of graphics cards for Asustek, the sources noted. As for notebooks, Asustek has set up ODM cooperation with Foxconn Electronics, Quanta Computer and Compal Electronics and will reduce production by Pegatron as well, the sources indicated.

Asustek's ending of its ODM relationship with Pegatron is to clearly cut relations between the two because Pegatron was spun off from Asustek, the sources said. However, it is quite difficult for Asustek to seek other ODMs capable of producing high-quality high-end motherboards to replace Pegatron, the sources indicated. Micro-Star International and Gigabyte Technology have the technological capability, but they will not undertake ODM production for Asustek because they are competitors, the sources explained.