ASUSTek Computer Inc. and Gigabyte Technology have announced their strategic alliance with the establishment of a joint-venture that will produce Gigabyte branded motherboards and graphics cards.
The new company will have an initial capital of NT$8 billion, with 51% of the company being controlled by Gigabyte and 49% by ASUS. The new subsidiary is expected to be fully operational in January of 2007. Under the agreement, the chairman of the joint venture will be appointed by Gigabyte, as well as three directors and one supervisor on the board of directors of the new company. The remaining two seats on the company's board will be assigned by Asustek.
This expected to increase their competitiveness in many different fronts, especially in leveraging both companies' economies of scale, research and development, and diverse product lines to achieve greater synergy.
Asustek, Gigabyte Announce Alliance
By: Sharon Khare
| Aug 11, 2006
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