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ASUS SIGNS AGREEMENT TO CONTINUE DEVELOPMENT AND SUPPORT OF INTEL'S NUC BUSINESS

by Ganesh T S & Anton Shilov on July 19, 2023 7:00 AM EST
 * Posted in
 * Sysems
 * Intel
 * Asus
 * NUC
 * Mini-PC

6 Comments | Add A Comment
6 Comments + Add A
Comment


ASUS and Intel late on Tuesday announced that they had agreed to a term sheet
involving Intel's NUC business, ensuring the continued support of existing NUC
hardware as well as the development of new designs. Under the terms of the deal,
ASUS will receive a non-exclusive license to existing Intel's NUC systems
designs, the right to develop future designs, and an obligation to support
existing NUCs. The world's largest motherboard supplier and one of the top 10 PC
makers will thus take over a significant portion of the NUC program. 

"As we pivot our strategy to enable ecosystem partners to continue NUC systems
product innovation and growth, our priority is to ensure a smooth transition for
our customers and partners," said Sam Gao, Intel vice president and general
manager of Intel Client Platform Solutions. "I am looking forward to ASUS
continuing to deliver exceptional products and supporting our NUC systems
customers."

"Thank you, Intel, for your confidence in us to take the NUC systems product
line forward," said Joe Hsieh, ASUS chief operating officer. "I am confident
that this collaboration will enhance and accelerate our vision for the mini PC –
greatly expanding our footprint in areas such as AI and AioT. We are committed
to ensuring the excellent support and service that NUC systems customers
expect."

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The move comes as Intel last week announced that the company will be exiting the
NUC business – one of several strategic shuffles made by Intel in the past
couple of years that has seen the company exit many of its non-core businesses.
With Intel doubling down on chip design and fabrication, these business units
have frequently been sold to other parties, such as Intel's SSD/NAND business
(now Solidigm/SK hynix) and Intel's pre-built server business (now MiTAC).

 

Under the terms of the proposed deal, ASUS will form a new business unit called
ASUS NUC, which will be able to produce and sell Intel's 10th through 13th
generation NUC PCs, as well as rights to develop future NUC designs. The deal
also obligates ASUS to provide support for the platform, with Intel and ASUS
both reiterating the importance of continued support (and business continuity)
of the platform.

Curiously, the deal is explicitly nonexclusive; so despite ASUS being set up to
be Intel's successor in the NUC space, ASUS isn't necessarily getting the NUC
market to itself – though Intel isn't announcing any other licensees at this
time, either. The limited details on the deal also do not mention ASUS taking on
any employees from Intel's existing NUC group, so it seems this will not be a
wholesale business unit transfer like other units such as SSDs have been.

In any case, licensing Intel's NUC business should greatly strengthen ASUS's
position within the compact PC market. Even with their vast engineering
resources and a broad lineup of products, ASUS has only offered a limited range
of NUC-sized PC products. The company currently offers its PN and PB series of
mini-PCs, along with some ExpertCenter desktop models that fit in the SFF
category. The PN series could be termed as clones of the mainstream NUCs, and
ASUS has a wide variety of notebooks that probably render the NUC Laptop Kits
irrelevant. However, ASUS currently doesn't have equivalents of the NUC
Enthusiast and NUC Extreme models or the NUC Compute Elements.

Ultimately, those NUC products will be complementary to ASUS's current lineup of
mini-PCs and SFF systems, allowing ASUS to grow its overall footprint in the
compact PC space. The deal is also a win for the existing NUC ecosystem, as
current users are assured of support and warranties will continue to get
honored.


The PN Mini-PC Series - NUC Mainstream's ASUS Avatar

Looking forward, there is plenty of scope for continued innovation in the NUC
space under ASUS. For example, allowing USB-C PD to power the NUCs, or even PoE
support for the NUCs targeting industrial applications, are low-hanging fruits.
ASUS is probably among the few companies in the world that can afford to
continue to innovate while running the current program at scale.

One big question is who will be producing existing and future NUCs.
Intel outsourced at least some of its NUCs to third parties like ECS and
Pegatron under OEM deals, which is a normal practice. By contrast, ASUS
outsources a significant portion of its production to Pegatron, its daughter
company. We do not know who exactly produces the 10th - 13th Gen. NUCs for Intel
at the moment, but if it is not Pegatron, it remains to be seen whether ASUS
will continue to order systems from the current supplier, or will try to
transfer production to its usual manufacturing partner.

Source: Intel



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 * POST YOUR COMMENT
   
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6 COMMENTS


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 * MEACUPLA - WEDNESDAY, JULY 19, 2023 - LINK
   
   I wish Asus the best with their new NUC business. They haven't exactly been
   the gold standard for NUC and SFF since ever, but they did show how much they
   can cram into handhelds and laptops.
   
   And then there is the Asus RMA process, which is painstaking enough that you
   hope to never get a lemon from them. I do hope they are better than that with
   NUC Reply
   

 * REFLEX - WEDNESDAY, JULY 19, 2023 - LINK
   
   All I know is that it would be tough for them to do worse. We deployed
   hundreds of NUCs into a corp environment as part of a point of sale system
   and it was a disaster. Unreliable, broken remote management, it was bad.
   Ended up having to rip them out and go for off the shelf HP solutions at
   nearly 3x the price. But they just worked.
   
   Hopefully Asus can right the ship as I love the form factor, but they are
   strictly enthusiast class as Intel designed them. Reply
   

 * GANESHTS - WEDNESDAY, JULY 19, 2023 - LINK
   
   Having had extensive experience with NUCs in deployment (one or the other has
   been my daily desktop driver since 2015), I too have encountered situations
   in which the hardware behaves erratically. Almost always, a disassembly
   followed by cleaning up the fan blades + vents helps. For one of the
   deployments, I transferred the board to an Akasa Turing fanless case, and
   that has been running flawless 24x7 for 3+ years now.
   
   I can imagine the active fan solution + vents cleaning is not possible in a
   PoS sale system involving many NUCs. I think those are situations where a
   vaue-adding vendor like OnLogic (who have their own 'NUCs' in the same
   form-factor / fanless) can help.
   
   Btw, I am curious what was the model deployed for the point-of-sale system?
   Reply
   

 * REFLEX - THURSDAY, JULY 20, 2023 - LINK
   
   Our issues were generally around terrible and unreliable wifi performance,
   random fail to boot and the remote UEFi update tools being flaky and bricking
   devices on occasion. The fans weren't great either but that wasn't the big
   issue for us. They always seemed like a not fully baked product, they had
   vPro and other enterprise features but in practice it all just never worked
   quite right. Reply
   

 * RJT - THURSDAY, JULY 20, 2023 - LINK
   
   Reflex, i found the opensource intel sponsored MeshCentral project to be very
   reliable. Does not need vPro hardware and firmware if using the agent. vPro
   can be a problem especially for old hardware. Needless to say, vPro has had
   so many major security flaws, but even if disabled, the vPro nic swallows the
   Wake-On-Lan packets, but i digress. Reply
   

 * REFLEX - THURSDAY, JULY 20, 2023 - LINK
   
   Something I'll keep in mind should i be in that situation again, but I left
   that team back in 2019 so not a problem I need to solve at the moment. Thank
   you for the info though, I'm always curious what the alternatives are. Reply
   

 * 1


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