One year after taking over production of Intel's NUC (Next Unit of Computing) Mini PC line, Taiwan's ASUS is finding success in integrating AI features. Intel, meanwhile, is still struggling to find a way to restructure its business and retake its former lead in chipmaking.
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00:00Taiwanese computer maker Asus has just debuted its newest line of mini PCs, known as NUC
00:06or NUX, which stands for the Next Unit of Computing.
00:09But they didn't always make them.
00:11Until last year, they were produced by U.S. company Intel, known primarily for its chip
00:15making business.
00:16But now, these mini PCs have become a growth engine for their Taiwanese partner.
00:21We believe the mini PC form factor will be the major, I would say the main form factors
00:27in the future IoT space and also in the commercial space.
00:31I think it gives us some big opportunity to grow.
00:36The first thing is because of the AI.
00:39And like much of the modern tech economy, for computer makers, AI is big business.
00:44This formerly American-made product line is part of a trend to try and bring AI functionality
00:49to everyday devices.
00:51And it's a trend that's only expected to grow.
00:54In fact, it's expected that within four years, 70% of all new PCs will have AI functionality
01:00right on the device, with less need for cloud-based AI services.
01:04And industry insiders say that can be important when protecting your data is key.
01:09You have healthcare applications, you have industrial applications for security, surveillance,
01:15monitoring.
01:16And most of these applications, they are very data sensitive.
01:20You would rather not send data to the cloud.
01:23Having an advanced AI-capable hardware sitting right next to you, which is capable of doing
01:29all the AI processing, is going to be a game changer.
01:33Asus' success with the NUC line stands in contrast to its former producer, Intel.
01:38The Arizona-based company has struggled in the past several years to keep pace with its
01:42competitors and investors have noticed.
01:46Intel stock has fallen by more than 60% in the last year, reaching its lowest price in
01:51a decade.
01:52At one point, dropping 26% in a single day.
01:56Licensing its NUC product line is just one of several drastic moves Intel has made to
02:00shore up its profitability and focus more directly on designing and making chips, as
02:05it seeks to compete with rivals like TSMC and AMD.
02:09It's cutting its staff and has split its chip-making foundry business into a separate subsidiary.
02:15It's even been the target of buyout offers from other hardware companies and private
02:18equity firms.
02:20The focus on a chips-first strategy may represent U.S. national priorities as well.
02:25We all understand that Taiwan is a geopolitical strategic partner of the U.S.
02:32So companies like Intel, they are okay with having Taiwanese companies acquire their businesses
02:39as long as these businesses do not interfere with their capabilities of defense and space
02:45applications.
02:46With the premiere of this new series, these mini-AI PCs show how big changes in the worlds
02:51of technology and geopolitics can all fit inside a very small package.
02:57Chris Ma and Chris Gorin for Taiwan Plus.