Asus is reorganizing to chase the physical AI market, a positive sign for the company's shift from hardware into robotics and factory automation.

• Asus is turning its smart-device unit into a Physical AI Solutions group on September 1, jointly led by Chang Chuan-te and Hsu Yu-chia.
• The group has three arms: AI solutions, self-running platforms, and humanoid robots.
• Asus expects the physical AI market to be worth over a trillion dollars by 2035, so it has made this a top priority.
• The company will start inside its own factories, using assembly and packing robots to improve quality and speed, then sell that setup to other electronics makers.
• Longer term, Asus is eyeing industrial automation, medical, and home robots.

Outlook: Asus wants to become a full AI company rather than a device maker, and the first proof will come from robots working on its own production lines.