There's little doubt that Asus is one of the technological leaders in the motherboard industry. One area that Asus had not previously explored much is the entry-level market, where companies like Biostar, ECS, and others have a strong foothold. Traditionally, Asus' motherboards have been built to satisfy the needs and wants of higher-end systems and price points, with features to match. Since the entry-level motherboard market is extremely large, and determined foremost by prices, you can understand why Asus would want to try its hand at it eventually.
Asus had a bit of a branding problem to deal with first though. How do you enter this market when you're known as an exclusively mid to high-end parts provider? To avoid diluting its respected motherboard brandname, Asus decided to create a new subsidiary focused entirely on entry-level motherboards and peripherals, and thus ASRock was born.
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