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ASUSTek & Gigabyte Rumoured To Merge

| Posted: Aug 8, 2006 1:14 am

Anyone would think the AMD/ATI merger has sparked off a trend; Rumour has surfaced today over at DigiTimes that ASUS may will be planning to acquire GIGABYTE Technology. The article then goes on to say that ASUS's reasoning behind this would be to keep their biggest threat (Foxconn) from closing the gap on motherboard sales as it has been doing for a while, thus further strengthening their position as the leading motherboard supplier in the retail market.


Could just be a bunch of balony however, given that both ASUS and GIGABYTE are denying any such plans. I'm sure we'll hear more on the subject in the near future either way.


Asustek Computer is interested in acquiring another motherboard specialist Gigabyte Technology, which shows better strength in distribution, according to sources in the Taiwan motherboard industry. Asustek's possible merger with Gigabyte is aimed to face rising competition from EMS provider Foxconn Electronics (the registered trade name of Hon Hai Precision Industry), whose motherboard shipments have drawn near the leading motherboard maker, indicated the sources.


Both Asustek and Gigabyte refuted the merger rumors at the Taiwan Stock Exchange (TSE) on August 4. To date, there is no plan about a merger that involves Asustek and Gigabyte, the two motherboard makers clarified in their respective filings with the TSE.


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