Asustek to spin off motherboard and GPU business under Pegatron brand

Asustek has informed the Taiwanese Stock Exchange that it will completely spin off its motherboard and graphics card subsidiary, Pegatron, in July 2010. The split is driven by the parent company's desire to continue its competition against the likes of HP and Dell under the ASUS brandname, while still collecting ODM and motherboard orders from those same companies for its manufacturing business. For its part, the newly self-governing Pegatron will be expected to advance the ASRock brand up from its current entry-level position and into the mainstream. We don't know how well that's going to go down, but at least the mobo market will be primed to embrace a new name after the heartbreak of losing old stalwarts like Abit and now ASUS.

[Thanks, Mack S]