AsusTek Computer Inc. has invested up to $16 million towards establishing a subsidiary Chinese esports operation.
The Taiwan-based electronics company plans to set up its first esports team, Rogue Warriors, which will operate under the Asus Republic of Gamers brand. The team is expected to compete in Tencent's League of Legends Pro League and also create an affiliate team in Taiwan.
Republic of Gamers is already a well-established esports brand, partnered with over 20 teams including NRG Esports, SK Telecom T1, and Echo Fox.
According to Yutang Sports, Asus CFO Nick Wu said the "subsidiary will see esports as its major business pillar as well as focusing on expansion in Chinese esports ecosystem."
Asus CEO Jerry Shen added that the business will look beyond merchandise and hardware sales to create its own esports industry ecosystem.
With an estimated 72 million esports enthusiasts, China currently presents fertile soil for investment in the industry. Furthermore, according to Asus' latest financial report, 18% of the company's revenue was generated through Chinese markets, around $14.5 billion..