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Asustek CEO Jerry Shen to resign in business restructuring

2018/12/13 21:30:06

Taipei, Dec. 13 (CNA) Taiwan-based PC brand Asustek Computer Inc. announced Thursday its Chief Executive Officer Jerry Shen (沈振來) will step down at the end of December as part of a corporate reorganization that will see the company venture into the AIoT sector, reshape its mobile phone business operations and establish a dual CEO structure.

Shen said at a press conference, after a board of directors meeting, that to accelerate the company's transformation, he will resign from his CEO position and set up a new company, which he will chair, to help Asustek venture into the AIoT (AI + IoT) sector.

Also at the press event, Asustek Chairman Jonney Shih (施崇棠) announced that S. Y. Hsu (許先越) and Samson Hu (胡書賓) will become the company's CEOs beginning Jan. 1, 2019 as the board agreed to adopt a dual CEO management model in the hope that the pair can work together to achieve the company's goals.

Hsu currently heads Asustek's PC business and Hu leads its worldwide customer care services.

Shih also lauded Shen's 25 years at Asustek and announced the company will take a 30 percent-stake in his new company.

Asustek plans to spend NT$10 billion (US$324.22 million) on developing its own AIoT business with the aim of becoming a leading player in the sector within three years, according to the company.

It will also form a strategic team to invest in the AIoT and B2B areas, the company said.

Asustek plans to modify its smartphone business strategy to focus mainly on gamers and power users and allocate a one-time expense of NT$6.2 billion to cover losses from inventory, amortization of advance royalties and costs from the business reorganization, according to the company.

(By Jeffrey Wu and Evelyn Kao)
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