Asus 2008 Annual Report Download - page 62

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(II) Industry Overview
MB, VGA, and CD-ROM are computer elements industry that has a supply chain formed
with CPU, module, PCB, and Connector. ASUS has kept a profound and excellent
relationship with the aforementioned businesses currently. ASUS has setup subsidiaries to
manufacture the aforementioned components for refining product development technology
and securing stable supply of components. Therefore, ASUS has a comprehensive deployment
of vertical integration substantiated. In terms of global distribution structure, ASUS has
worked with over 300 agents and over twenty thousand distributors closely worldwide. ASUS
is the world number one brand in Europe, Asia, and America; in other words, ASUS is a
dominant brand name in market.
(III) Research and Development
ASUS has striven in R&D since the day of incorporation to control self-developed
technology for the R&D, production, and marketing of advanced MB and to develop 4C
(computer, communication, consumer electronics, and automobile electronics) integrated
products. ASUS has ATEC setup in 2003 and with three R&D divisions setup including
broadband wireless communication, wireline / wireless exchanger, and VCD / DVD key
technology. For ASUS, R&D Division and R&D Center work together reciprocally. R&D
Center focuses on technology study and commercialization of creativity. R&D Center is
entrusted with the responsibility to conduct preliminary study and assessment on the software
and hardware key technology, module, and applied program development platform in depth
for the reference of R&D director in judging technology movement and selecting partners.
R&D Division focuses on system integration and product introduction and commercialization.
Technology is transformed into income eventually; also, part of the income is contributed to
the creativity or technology supplier reasonably. R&D Center will be operated permanently
under such a positive cycle. The attention of and incentives provided by the company’ s
management will allow ASUS to recruit R&D talents for technology R&D continuously. In
the constantly changing computer world, the company has key technologies and leading
products to compete in market and to create product value. ASUS was with a R&D expense of
$5,486,036 thousand booked in 2008.
ASUS is known for fast product R&D and Time to Volume. ASUS leads the industry to
develop advanced products successfully and with the following new products to show for:
1. Product R&D in 2008:
a. Eee PC 8.9” computer
b. Eee PC 10” computer
c. Eee desktop computer
d. 5G multimedia phone
e. Advanced LED display with built-in Networking camera
f. New-generation modules MB
g. Mobile theater advanced dual core NB