Asustek Computer Inc (華碩) yesterday provided a mild outlook for its business in the upcoming quarters, after revenue fell by a double-digit percentage in the first quarter due to the effects of the COVID-19 pandemic.
“It has become challenging for us to maintain growth in both revenue and profit in the short term... The PC market is no longer on an upward trend,” Asustek chairman Jonney Shih (施崇棠) told shareholders at the company’s annual general meeting in Taipei.
Citing heavy market uncertainty fostered by the pandemic, Shih said that Asustek’s revenue might be affected in the second half of this year.
Photo: CNA
“Everybody is unsure about how everything will turn out ... but market demand will inevitably be dampened by the coronavirus’ effect on the [global] economy,” he said.
The silver lining is a surge in demand due to global lockdowns, which prompted remote working and distance learning, he added.
Asustek supplies notebook computers, smartphones and motherboards under its brand name.
The company yesterday reported that sales last month increased 29.03 percent year-on-year to NT$30.17 billion (US$1.01 billion).
In the first five months of this year, the company’s cumulative revenue contracted by 4.36 percent on an annual basis to NT$123.66 billion.
Analysts forecast that the company’s second-quarter revenue would increase from the previous quarter due to rush orders driven by work-from-home demand.
Seeking to improve operational efficiency, Shih said that he would accelerate Asustek’s digital transformation.
“We can use machine learning and artificial intelligence to help us figure out the most efficient way to produce and assemble PCs,” he said.
The transformation, prompted by the pandemic and US-China trade tensions, is essential for increasing the company’s competitive edge, Shih said.
While Taiwan Semiconductor Manufacturing Co’s (台積電) new investment in the US is a special case, Shih said that final assembly might be set up in proximity to end markets to better serve customers.
The company is also determined to pursue legal action against employees that commit vendor fraud, he told shareholders.
Asustek early last year reported that two of its employees were involved in corruption schemes against local authorities.
Conspiring with vendors, the employees from the procurement department inflated the prices of PC components during five years, which ended up costing the company nearly NT$90 million, the Chinese-language Liberty Times (sister newspaper of the Taipei Times) reported last month.
“We have adopted a very serious attitude toward this issue,” Shih said, citing the company’s strong emphasis on honor.
“Even though it concerns only an extremely small number of people, we have nonetheless decided to take legal action to show Asustek’s determination [in combating such crimes],” Shih said, adding that the company is collaborating with third parties to help lead throughout internal audits.
The two employees are awaiting trial.
Hon Hai Precision Industry Co (鴻海精密) yesterday said that its research institute has launched its first advanced artificial intelligence (AI) large language model (LLM) using traditional Chinese, with technology assistance from Nvidia Corp. Hon Hai, also known as Foxconn Technology Group (富士康科技集團), said the LLM, FoxBrain, is expected to improve its data analysis capabilities for smart manufacturing, and electric vehicle and smart city development. An LLM is a type of AI trained on vast amounts of text data and uses deep learning techniques, particularly neural networks, to process and generate language. They are essential for building and improving AI-powered servers. Nvidia provided assistance
GREAT SUCCESS: Republican Senator Todd Young expressed surprise at Trump’s comments and said he expects the administration to keep the program running US lawmakers who helped secure billions of dollars in subsidies for domestic semiconductor manufacturing rejected US President Donald Trump’s call to revoke the 2022 CHIPS and Science Act, signaling that any repeal effort in the US Congress would fall short. US Senate Minority Leader Chuck Schumer, who negotiated the law, on Wednesday said that Trump’s demand would fail, while a top Republican proponent, US Senator Todd Young, expressed surprise at the president’s comments and said he expects the administration to keep the program running. The CHIPS Act is “essential for America leading the world in tech, leading the world in AI [artificial
DOMESTIC SUPPLY: The probe comes as Donald Trump has called for the repeal of the US$52.7 billion CHIPS and Science Act, which the US Congress passed in 2022 The Office of the US Trade Representative is to hold a hearing tomorrow into older Chinese-made “legacy” semiconductors that could heap more US tariffs on chips from China that power everyday goods from cars to washing machines to telecoms equipment. The probe, which began during former US president Joe Biden’s tenure in December last year, aims to protect US and other semiconductor producers from China’s massive state-driven buildup of domestic chip supply. A 50 percent US tariff on Chinese semiconductors began on Jan. 1. Legacy chips use older manufacturing processes introduced more than a decade ago and are often far simpler than
Gasoline and diesel prices this week are to decrease NT$0.5 and NT$1 per liter respectively as international crude prices continued to fall last week, CPC Corp, Taiwan (CPC, 台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. Effective today, gasoline prices at CPC and Formosa stations are to decrease to NT$29.2, NT$30.7 and NT$32.7 per liter for 92, 95 and 98-octane unleaded gasoline respectively, while premium diesel is to cost NT$27.9 per liter at CPC stations and NT$27.7 at Formosa pumps, the companies said in separate statements. Global crude oil prices dropped last week after the eight OPEC+ members said they would
RSS