TAIPEI (Taiwan News) — Asus Co-CEO S.Y. Hsu (許先越) said the company sees Japan as a key market for its AI laptops as it braces for US tariff hikes, Nikkei Asia reported Wednesday.

The computer maker is betting on strong demand for its notebooks in Japan, where it launched the Zenbook Sora in February. Weighing just 899 grams with a 23-hour battery life, the laptop is designed for mobile users and starts at around NT$35,100 (US$1,178).

Hsu explained that Japan aligns with Asus’ strategy of selling premium, high value-added devices. He said the company has optimized its production, testing, and shipping processes to support this push.

Asus launched AI PCs with Microsoft’s Copilot+ and its software for organizing photos and videos. Despite competition from Lenovo and HP, Hsu said Asus now holds over 30% of the global AI PC market.

Hsu said Asus has 5,000 R&D staff, including 1,000 working on AI, and is accelerating software development. He said he expects AI PCs to make up 20–30% of the market this year and surpass 50% by 2026.

To prepare for US tariffs, Asus has stockpiled two quarters' worth of inventory, but Hsu warned further duties may cut into margins. If tariffs take effect, prices could rise 5% to 10% depending on the rate, he added.

Asus is also expanding into India, partnering with a contract manufacturer under the Make in India initiative. Hsu said this shift offers long-term benefits but acknowledged India’s supply chain still lags behind China’s.