Foxconn officials have confirmed the company's entrance into the graphics market today during Computex Taipei. As part of its announcement, Leadtek will simultaneously withdraw from the VGA manufacturing.  Foxconn is the primary original equipment manufacturer partner for Leadtek video cards, and the withdrawal of Leadtek's manufacturing presence is to reduce the cross-over between the two companies.  For now Foxconn will only announce NVIDIA graphics cards for the launch.

Leadtek has had a traditionally strong presence for graphics adaptors in the US and Asia, due primarily with its strong manufacturing partnerships.  Foxconn is one of the primary reference design manufacturers for NVIDIA, and since the company did not have a retail channel Leadtek traditionally was one of the first to market with NVIDIA components.  With the Foxconn-Leadtek ties severed, Leadtek will have to use different component manufacturers for its NVIDIA cards.

Foxconn is also expected to announce an entrance into the ATI graphics market.  Foxconn insiders do not have a definite date or time when this will happen, though one product manager described the move to support ATI graphics as "inevitable."

Several weeks ago, we spotted some of Foxconn's GeForce 7900GX2 QUAD SLI graphics cards.  At the CeBIT computer show in Germany, Foxconn representatives unofficially announced that the company would enter the graphics card business.