Gigabyte, ASUS in joint venture

Component giants Gigabyte Technology and ASUSTek Computer have established a joint venture that would see a newly established subsidiary produce Gigabyte-branded motherboards and graphics cards.

The new company would have an initial capital of NT$8 billion with 51 percent of the organisation being controlled by Gigabyte and 49 percent by ASUS. The joint venture would commence operation in January 2007.

Gigabyte said in a statement that in the slow developing motherboard market, it established the joint venture with ASUS to increase its efficiency.

Quoting the Institute of Information Industry, Gigabyte said in a statement that the leading PC manufacturers have enlarged their market share, causing the market share of the motherboard channel to decline dramatically.

The Institute of Information Industry, US$8.9 billion worth of motherboards were produced worldwide in 2005 at a growth rate of only 2.2 percent on 2004.

For the first half of 2006, around US$3.67 billion worth of motherboards were produced worldwide, down from US$3.75 in the same period a year ago, the Institute said.