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Asustek and Gigabyte Cancel Joint-Venture Efforts
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Written by Gizmo   
Thursday, 29 March 2007 19:41

X-bit Labs

by Anton Shilov

Asustek Computer and Gigabyte Technology, two leading suppliers of computer hardware from Taiwan, have announced cancellation of the joint-venture between the two companies. It is believed that the companies decided to shelve the joint venture that would control over the largest part of the global mainboard market after emergence of internal opposition and outside pressure.

Read the full story at X-bit Labs:

In August, 2006, Asus and Gigabyte agreed to form a joint-venture, which would produce mainboards and graphics cards under Gigabyte brand-name. Under the terms of the agreement, Gigabyte itself should cease production of mainboards and graphics cards, whereas Asus would continue to ship its products to the market. Gigabyte would control 51% of the newly-formed Gigabyte United company, while Asustek would have 49% stake in the joint-venture.

However, Asustek reportedly delayed to remit approximately NT$4 billion ($241.8 million, €181.2 million) of investments into the company that started to operate on the 1st of January, 2007. In addition to Asustek’s strange business behaviour, the new joint-venture also faced some other problems, which included internal opposition, pressure from clients who wanted to ensure consistent new products development by Gigabyte and possible violation of European antitrust laws.

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