CPU/Mobo Asustek rumored to soon merge with Gigabyte

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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.

In 2005, Foxconn shipped 40 million motherboards, and 32 million units were OEM shipments. Asustek shipped 52 million motherboards. This year, Foxconn's shipment target for own-brand motherboards was set the nine-million mark, and OEM shipments are also expected to increase.

Asustek is aware of Foxconn's threat that comes from the EMS maker's large-scale financial support and intends to consolidate Gigabyte to secure its leading position in the motherboard industry, market sources observed. If Asustek merges with Gigabyte, the combined company's motherboard shipments may amount to 78 million units in 2006, the sources said. The merger will also help Asustek grab a 45% share of the worldwide motherboard market, by consolidating Gigabyte's strength in the distribution segment and enhancing its high-end portfolio in the own-brand business, the sources noted.

As reported on March 28, Gigabyte already dismissed rumors that the company had been in talks of a merger with Micro-Star International (MSI). Earlier this year, Gigabyte announced that its gross margins dropped below 10% in the first quarter. The motherboard maker's sequential decreases in gross margin since 2003 have been attributed to pressure from industry price wars.
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NO i dont think so....

Also Bottle,should it be - "Gigabyte to merge with Asus" ???

cos from what i make of it,Asus is taking over Gigabyte....

correct me if i am wrong.
 
yup asus must learn frm giga......atlest my badluk with asus will end.....becoz of the merging with giga(which has goodluk with me)
 
what you guys missed in the story was about foxconn.
last year (2005) it shipped 40 million m/b's as compared to 52 million by Asus. this year it is estimated that the gap will shrink and it is projected within 3 years it will overtake asus.

Their new i975 m/b for conroe Foxconn 975X7AB-8EKRS2H will be a very good alternative to flagship asus i975 m/b's. it would be priced about 25 ~ 30 % less than that of asus flagship model with negligible difference in performance or features.

well any mergers / acquisitions which benefits the customer / end user is always welcome. lets see how the story unfolds ...
 
Nice ... is this some kind of merger season ??? all these companies suddenly wanna get married... :p amd-ati now asus-giga...but i dont understand what this merger will bring to both companies ... they are both motherboard makers... unlike ati and amd who are experts in different fields

EDIT : 700 POSTS WEEEEEE :D
 
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