Advantech, a leading industrial PC maker, has announced the launch of its ASEAN Shared Service Center (ASSC) in Penang, Malaysia. This move is part of the company’s strategy to shift its focus from China to the Asia-Pacific region. The aim of establishing the ASSC is to support industrial users in project implementation and in-depth development, as well as to enhance regional core competencies and localized services.
Penang, known as the Silicon Valley of the East and renowned for its multicultural talent, has been chosen as the location for the ASSC. Alongside the establishment of the service center, Advantech has also signed a letter of intent with Piacom JSC, a system integrator affiliated with Vietnamese petroleum group Petrolimex, to provide comprehensive solutions for the gas station industry in the region, covering both software and hardware.
The ASSC will not only offer repair and maintenance services, project integration, and technical consultation to customers in Southeast Asian countries such as Thailand, Vietnam, and Indonesia, but it will also support digital transformation and artificial intelligence of things (AIoT) technology in other Asia-Pacific markets like Pakistan and the Philippines. Furthermore, Advantech has launched a University Co-Creation Worldwide Expansion Plan (UCC), aiming to collaborate with colleges and universities worldwide to promote industry-academia cooperation and create a talent development ecosystem in the Asia-Pacific region. As part of the UCC, the company plans to establish 12 AIoT laboratories in the next two years.
Last year, Advantech faced various challenges, including high global inflation, geopolitical conflicts, and uncertainties surrounding China’s economic recovery, resulting in a 6.08 percent drop in consolidated revenue. However, Japan emerged as the best-performing market with 10 percent annual growth. Taiwan, China, and emerging markets experienced double-digit percentage declines, while North America and Europe saw single-digit percentage falls.
Looking ahead, Advantech anticipates a return to growth this year, driven by new orders for emerging IoT applications and deployment in new markets in the second half of the year. The company aims to focus on operational efficiency optimization in the short term.
In conclusion, Advantech’s launch of the ASEAN Shared Service Center in Penang reflects its commitment to targeting the Asia-Pacific region and implementing a China Plus One strategy. By enhancing regional core competencies, providing localized services, and collaborating with universities through the University Co-Creation Worldwide Expansion Plan, the company aims to strengthen its presence in the market and foster industry-academia cooperation in the Asia-Pacific region.
