In Chinese, for instance, acronyms are composed of the initial syllabic characters of (usually) two-syllable words. So, Peking (= Beijing) University, or Beijing Daxue [lit. 'NorthCapital BigSchool'] becomes Beida [lit. 'NorthBig']. In Korean, Korea University, or Koryo Taehak [lit. 'HighBeautiful BigSchool'] becomes Kodae [lit. 'HighBig']. In Japanese, it’s a bit more complicated. Chinese characters can be pronounced not just in their Chinese loan forms, but as native Japanese words that mean (more or less) the same thing… So the acronym for Hiroshima University, or Hiroshima Daigaku [lit. 'WideIsland BigSchool'] becomes HiroDai [lit. 'WideBig']. The name Hiroshima is native Japanese (the Sino-Japanese pronunciation would be Koutou = Ch. Guangdao), but Daigaku is borrowed [= Ch. Daxue].
He goes on to give examples from Indonesian and Vietnamese (which uses initial letters, like English, rather than combining initial syllables). I would direct the interested reader to my own entry on the phrase gung ho, which has its origin in precisely this form of abbreviation.
A side issue: the remark “Daigaku is borrowed [= Ch. Daxue]” is presumably true, but I wish there were a site where one could easily learn which common words were borrowed one way and which the other—a great many words relating to modern phenomena were coined in Japan and then borrowed into Chinese via the characters, for example Japanese denwa ‘telephone,’ borrowed into Chinese as dianhua. (There’s an interesting discussion here, which unfortunately gets sidetracked by a pointless argument over whether the formation of the Japanese word is important.)