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Asustek and Gigabyte hold hands for joint motherboard venture


Apparently the world of motherboard manufacturing is a whole lot more political than you'd guess, and this new joint venture between motherboard giant Asustek and its smaller competitor Gigabyte has more twists and turns in it than an episode of The West Wing. They're going halvsies on a new company to produce lower-end motherboards in competition with rising star Hon Hai, which recently shot to number 2 in the motherboard world. The NT$8 billion venture ($244 million USD) is simultaneously an effort by Asustek to drop a competitor (Gigabyte) and a method of cost savings for Gigabyte, since production will likely be outsourced to Asustek. Gigabyte's motherboard and graphics card biz will be wholly swallowed by the new venture, and they'll hold 51 percent of the company, while concentrating on phones and other such devices with their Gigabyte brand. There, confused yet?

[Via The Inquirer]

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