Asetek’s first quarterly report of 2025 was revealed recently, and it’s grim reading for USA-based Asetek SimSport customers.
CEO André Eriksen had previously warned of price increases for its U.S. customers thanks to the U.S. government’s initial 20% tariffs on goods shipped from the European Union, which was later reduced to 10% as part of a ‘temporary pause’.
China, which produces many of the components required for global electronics brands, is also currently subject to a 125% tariff, negatively affecting Asetek’s manufacturing facilities in the region.
As a result, the Danish firm has announced the cessation of shipments to the USA.
“Due to the tariffs, Asetek has ceased all SimSports shipments to the U.S,” a statement read.
To underline the gravity of this decision, the report also states that “approximately 50% of total revenue in the SimSports segment was derived from sales to the U.S. market,” exemplifying the seriousness of the situation.
“It is too early to predict the long-term impact of the import tariff scheme introduced by the U.S. in early April. The duties are industry-wide and create uncertainties across the value chain from manufacturers to end-users,” the statement continued.
Asetek is taking affirmative action, however, by moving more of its production from China to Malaysia in an attempt to mitigate the substantial tariffs imposed on the former by the U.S. It is unknown when, or if, Asetek SimSports will return to shipping its products stateside.
Sluggish start
Asetek SimSports, established in 2021, has experienced a relatively sluggish start to 2025, but launched an equity rights offering in early January. This raised $10.4 million net through the issuance of 219.9 million new common shares, $3 million of which was used to “settle accrued liabilities and debt”.
As a result of the challenging economic situation, Asetetk expects its SimSports division’s revenue to drop to between $5 and $10 million from an initially estimated $12 to $15 million. Its adjusted operating losses for Q1 2025 were stated as $1.8 million, a drop of $400k over 2024.
Asetek SimSports’ new product line
The news arrives as Asetek is poised to release its new range of Initium products, designed as an entry-level ecosystem for sim racers. The Initium range consists of a cockpit, pedals, steering wheel and wheelbase, with plans for more additions in future.
The new product line also represents the brand’s first foray into console compatibility, with the Initium range set to be Xbox-ready. The Initium range is set to debut this year.
Asetek Liquid Cooling’s future
Asetek SimSports’ parent company specialises in liquid cooling for PC hardware and may soon be purchased by another party: “Asetek has received an indication of interest concerning its Liquid Cooling business,” a statement read.
“Such interest has increased in relevance, and discussions are taking place with multiple parties related to a potential partnership focused on utilization of the currently dormant data center related liquid cooling asset portfolio. Discussions are ongoing, and no agreements, terms or commitments have been entered into by the Company at this stage, and it is uncertain whether any formal agreements will materialize”.
This part of the business saw a reduction in revenues between 2024 and 2025 of around $2.4 million, something it puts down to a ‘lower average selling price on liquid cooling products’. Asetek remains bullish, however, citing a 9% reduction in operating expenses compared with the same period last year.
What do you make of Asetek SimSports stepping away from the U.S. market? Let us know in the comments below.
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No doubt the first of many companies to do so. The USA is entering the ‘find out’ phase.