Digitimes reports that Asustek Computer reportedly plans to outsource some of its production of motherboards and graphics cards to rival company Elitegroup Computer Systems (ECS) as part of efforts to expand its outsourcing policy to reduce its dependence on Pegatron Technology, while boosting its profitability, according to industry sources.
Asustek declined to comment on market reports, although the company has recently accelerated its outsourcing strategy by adding Foxconn Electronics (Hon Hai Precision Industry) and Quanta Computer as its production partners for notebooks and Eee PCs and also including Foxconn as its OEM maker of Garmin-Asus smartphones.
Meanwhile, Pegatron is also reportedly soliciting motherboard and graphics card orders from Gigabyte Technology, which is currently cooperating with Foxconn International Holdings (FIH) and Global Brands Manufacture (GBM) for motherboard and graphics card production, the sources added.