ASUS is hoping to invest US$50 million to open a mobile phone production subsidiary in Shanghai.

The additional investment was a resolution of the Taiwan-based company's Board of Directors, so it still needs some time to be reviewed.

ASUS's Board of Directors disclosed that the new factory, which is to be called "Gong Shuo" will be put into operation in the third quarter of this year, and it will focus on making ASUS's own brand mobile phones in the initial period and try to become an OEM in the future.

Mobile phone service has become a new growth point for ASUS now that the company's traditional PC service is stagnating.