UPDATED 19:58 EDT / JULY 18 2023

INFRA

Asus agrees to keep Intel’s NUC mini-PC brand alive

Taiwanese laptop computer maker ASUSTek Computer Inc. has agreed to take up the mantle of Intel Corp.’s Next Unit of Compute systems, signing an agreement with the chipmaker to design, manufacture, sell and support future generations of the product.

Intel’s NUC computers are super-compact, mini-personal computers that became quite a hit when they were launched early in the last decade. As the acronym suggests, they were originally conceived as a showcase for what could be done with Intel’s forward-looking chip designs.

The earliest Intel NUCs were generally equipped with low-powered processors such as its Atom and Celeron central processing units. The extremely small form-factor devices generally had space to connect a keyboard, a mouse and a display.

They quickly became popular in various niche markets where low-cost PCs were desirable, such as in call centers, kiosk integrations, space-constrained offices and for DIY projects. Anyone who happened to have a spare monitor lying around could be quickly attached to create a backup desktop for emergency use. The NUCs even became quite popular with PC gamers for a while.

Despite the appeal of the little devices, Intel admitted to The Verge last week that it had decided to wash its hands of them, saying it would no longer make any more direct investments in the business. Instead, it said it would pivot its strategy to enable ecosystem partners to continue the innovation and growth of NUC devices.

In an announcement today, Intel said it has agreed to a term sheet with Asus that will enable the computer manufacturer to build and sell the 10th to the 13th generations of NUC systems, and also design future devices.

“Our NUC systems product team delivered unique products that spurred innovation in the ultra-small form factor market,” said Sam Gao, Intel’s vice president and general manager of Client Platform Solutions. “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. I am looking forward to Asus continuing to deliver exceptional products and supporting our NUC systems customers.”

Holger Mueller of Constellation Research Inc. said Intel’s NUC machines are a popular niche product, and fans of the devices were rightly outraged when the company revealed it will no longer be investing in the business.

“Popular products don’t die quickly, and we see this now with Asus stepping up to take over the direction of NUCs,” Mueller said. “It’s a win for everybody concerned. Customers will still be able to buy updated new NUCs with more modern features, while Asus gets an incremental business that plays off its core competency, and Intel can simplify its product portfolio without leaving its customers stranded. Intel probably could have avoided a lot of uproar had it found a partner sooner, though.”

Asus has received a nonexclusive license to sell Intel NUC systems, and the deal will also enable it to provide support continuity for older customers, Intel said. Asus intends to create a new business unit, which will be known as Asus NUC BU.

Asus Chief Operating Officer Joe Hsieh said in a statement that he’s confident the agreement will accelerate the company’s vision for mini-PCs. Looking forward, he added, Asus wants to use the NUC systems to expand its footprint in areas such as artificial intelligence and the internet of things.

Photo: gablmedia/Pixabay

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