Asus 2014 Annual Report Download - page 87

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b. There is an increasingly ambiguous boundary between the market for notebooks,
tablets and smartphones. The market scale is massive, and ASUS is capable of
managing the production and sales of all three products at the same time. The
company’s operational synergy is far superior to others in the industry.
c. The quality and technical demand for wireless broadband communication products is
extremely high and ASUS holds the key technologies that allow it to develop
high-quality products with a trusted, word-of-mouth reputation from customers.
2. Production Process of Major Products
a. MB and VGA: Automatic SMT →Pick and place→soldering pot→burning→test.
b. NB, tablet and other products: Automatic SMT→pick and place→soldering pot
→burning→PCB test→assembling→system test。
(III) Supply of major raw materials:
Major raw materials Suppliers
Chi
p
s AMD, Intel, Nvidia, Qualcomm
Lo
g
ic IC Newland, RT, RICHTE
K
PCB HSB, WUS, Nova
Connectors HON HAI, LOTES
MEMORY ELPIDA, HYNIX, SAMSUNG, MICRON, Nan
y
a
LCD AUO, INX, LGD, TIANMA
Most of the aforementioned manufacturers have been doing business with ASUS for
years.
(IV) Major Customers with over 10% net sales and Suppliers with over 10% total purchases
of the last two fiscal years
1. Major Suppliers of the last two fiscal years
Unit: NT$ thousands
2013 2014 2015Q1 (Note 1)
Item Name Amount
Percentage of
net annual
purchase (%)
Relation
with
issuer
Name Amount
Percentage of
net annual
purchase (%)
Relation
with
issuer
Name Amount
Percentage of
net purchase
of Q1 (%)
Relatio
n with
issuer
1 T Suppliers 92,141,890 18 None Z Suppliers 104,668,685 18 None
2 Z Suppliers 85,271,907 17 None T customer 84,352,949 15 None
3 F Suppliers 68,502,882 13 None F customer 74,859,692 13 None
Others 261,874,314 52 Others 302,723,942 54
Net
purchase
amount
507,790,993 100
Net
purchase
amount
566,605,268 100
Note 1: The 2015Q1 financial statements audited by the CPA were not yet available up to the print of annual
report on April 15, 2015.
Note 2: The purchase amount from the last two years included raw material amount purchased for clients.
Note 3: Causes of increase and decrease – for business operation
2. Major Customers of the last two fiscal years:
No customer accounted for more than 10% of the consolidated net sales revenue in the
last two fiscal years.
(V) Production/Sales Quantities and Value over the Past Two Year: Not Applicable