ASUS and Gigabyte 'get married'

ASUSTek Computer (Asus) and Gigabyte Technology - the two largest motherboard and graphics card manufacturers in the world - have decided to enter into a joint venture to produce Gigabyte-branded motherboard and graphics cards.

The board of both companies has officially approved this cooperation plan on August 8.

Under the cooperation plan, Gigabyte Technology will transfer its assets along with its brand name motherboard and graphics card business to the new joint venture. And Asus, after completing all necessary legal obligations and procedures, will also have to invest and help manage the joint venture and develop a strategic alliance with Gigabyte.

The new joint venture between Asus and Gigabyte will officially go into operation in January 2007. Gigabyte is expected to pay 50% of the initial capital of the joint venture, the rest belongs to Asus. Thus, Gigabyte will be entitled to appoint the chairman of the board, 3 director positions and 1 supervisory position in the Board of Directors of the new joint venture. The rest are the responsibility of Asus.

The Gigabyte-Asus alliance is expected to boost overall performance while creating a larger resource for the development, research and improvement of both companies' products.

Prabodh Vyas - CEO of Gigabyte Technology India - said: " The alliance of the world's two largest motherboard and graphics card manufacturers will push both companies' businesses to new heights, promote research and development, diversify products and create more new incentives ".

Hoang Dung