Asus 2010 Annual Report Download - page 71

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67
languages for substantiating localized operating strategy and developing local
market.
(2) Disadvantages
The availability of resources and the control of cost are crucial to the business
performance of the subsidiaries overseas; therefore, the head office must be able to
control the said key elements effectively.
(2) Application and production process of major products
1. Application of major products
a. MB, VGA, and CD-ROM are important elements to desktop computer and server.
ASUS is in a leading position with all the aforementioned products worldwide.
b. NB and PDA are with potential to grow in commercial market (governmental offices
and business) and home market (personal consumption and use). NB and PDA of
ASUS are with bright future along with the prevailing concept of mobile office.
c. For the development of information products, wireless broadband mobile device
should be linked to personal life; therefore, the most important communication
interface is wireless broadband communication technology. For the development of
the professional and star product, it is necessary to control the key technology for
developing marketable products and ASUS is moving towards the said direction.
2. Production Process of Major Products
a. MB and VGA: Automatic SMT →Pick and place→soldering pot→burning→test.
b. NB and other products: Automatic SMT→pick and place→soldering pot
→burning→PCB test→assemblying→system test。
(III) Supply of major raw materials
Major raw materials Suppliers
Chips AMD, Intel, Nvidia, SiS, VIA
Logic IC Winbond, Newland, RT
PCB HSB, GCE, Nova, Tzi-Yin
Connectors HON HAI, LOTES, Tyco)
DRAM ELPIDA、HYNIX、SAMSUNG、Nanya
LCD LGD, AUO, CMI, HannStar
Most of the aforementioned manufacturers are domestic and international with good
quality and reputation built; moreover, they have been in business with ASUS for years
in a good term with raw materials supplied to ASUS that help the company to stay
competitive.