ASUS and Gigabyte Form New Joint Venture
August 8, 2006 7:31 AM
comment(s) - last by
Gigabyte and ASUS shake on the deal - Image courtesy HKEPC
Asustek and Gigabyte have just agreed to a major combined arms strategy
So it's not as big of news as the recent
AMD and ATI merger
, but cross-town Taipei rivals Asustek and Gigabyte have just announced a major joint venture between the two companies. The new joint venture will effectively let Gigabyte use Asustek facilities for manufacturing of "Gigabyte" branded video cards and motherboards.
Gigabyte will own a 51% stake in the company, with Asustek picking up the other 49%.
) reports the deal is valued at approximately $244M USD, and that the new joint venture will become official January 1, 2007. Neither company would comment on the effect of the joint venture on existing manufacturing, claiming that only the legal proceedings to start the company have been publically announced at this time. The joint venture will also get a new name, but both companies are also tight lipped about that as well.
Analysts are already heralding the venture as a major milestone for the PC industry. Occasional
T-Break Editor-In-Chief Abbas Jaffar Ali claimed
"By combining the manufacturing capability of ASUS with the channel presence of Gigabyte, the two companies will be able to put tremendous pressure on the other Taiwan manufactures, especially Foxconn." Peter du Preez, Universal Abit Marketing Manager, added "It all started way back when ULi and NVIDIA joined -- since then, well, it's been all about grabbing a buddy."
ASUS and Gigabyte have traditionally held the title of tier-1 motherboard manufacturers in Taiwan. This title was also shared by Microstar International -- also a major player in motherboard, VGA and server manufacturing. However, as PC component manufacturing began to move to mainland China, Foxconn and ECS-Tatung have risen to become the dominant component manufacturers.
ASUS has strong manufacturing ties with Sony (Playstation 3), Apple (MacBook). The company has also attempted to enter into the retail market with its own lineup of notebooks and digital audio players, with mixed success. Earlier this year ASUS stated that the company would split its OEM and retail manufacturing by
an effort to give the manufacturing half of the company more room to compete with the "
That's not to say ASUS and Gigabyte have idle competition. ECS, currently the largest motherboard manufacturer in the world by volume,
just sealed a deal to acquire Uniwill
, making the new company even more massive than it was before.
This article is over a month old, voting and posting comments is disabled
RE: Bad news for consumers too !
8/8/2006 9:59:47 AM
The what he states it is little overboard, but actually he is right. ASUS used to eb top of the line in everything, just like sony, but both companies have fallen far. Samsung now exclipes Sony in most produces. ASUS products are just not as realible or advanced as they once were.
4 years ago SONY, ASUS and NEWEGG was great. Now they have left a bad taste in my month. Not that they are suck, but when you do somthing so well for so long then become just ok, it fell like you ahve fallen alot farther.
"We basically took a look at this situation and said, this is bullshit." -- Newegg Chief Legal Officer Lee Cheng's take on patent troll Soverain
Elitegroup-Uniwill Acquisition Finalized
August 1, 2006, 6:22 PM
AMD-ATI: A Done Deal
July 24, 2006, 5:00 AM
Four Taiwanese Manufacturers Control Majority of Notebook Market
June 19, 2006, 11:09 AM
Not All the High-Tech Jobs Are in California
August 4, 2016, 8:29 PM
Google's Gleaming Glass HQ Gets Mountain View Snub, LinkedIn Gets the Love
May 7, 2015, 6:58 AM
Tech's Tax Day Fortunate Few: Qualcomm, Xerox, GE, et al. Pay Little or No Taxes
April 15, 2015, 11:30 AM
LinkNYC Terminals to Blanket New York City With Free WiFi, Free Calls, and Ads
November 17, 2014, 6:50 PM
Microsoft is Open-Sourcing Most of .NET, Adding OS X and Linux Support
November 12, 2014, 8:27 PM
Home Depot Lost 53 Million Emails, Blames Windows, Buys Execs New Macs
November 9, 2014, 5:00 PM
Most Popular Articles
5 Cases for iPhone 7 and 7 iPhone Plus
September 18, 2016, 10:08 AM
No More Turtlenecks - Try Snakables
September 19, 2016, 7:44 AM
ADHD Diagnosis and Treatment in Children: Problem or Paranoia?
September 19, 2016, 5:30 AM
Walmart may get "Robot Shopping Carts?"
September 17, 2016, 6:01 AM
Automaker Porsche may expand range of Panamera Coupe design.
September 18, 2016, 11:00 AM
Latest Blog Posts
Who is in Risk of Getting Oral Cancer?
Sep 23, 2016, 6:02 AM
France Bans Plastic Eating Utensils in Restaurants
Sep 18, 2016, 10:49 AM
Progress Against Acute Myeloid Leukemia
Sep 17, 2016, 5:30 AM
Apple Watch Series 2 - Number 1 in the Customer Satisfaction.
Sep 7, 2016, 6:19 PM
First Self-Driving Car debut on the streets of Singapore
Aug 28, 2016, 4:10 PM
More Blog Posts
Copyright 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information