Asustek to acquire Gigabyte?

By Justin Mann on
Asustek has seen lots of success, and as such like any growing company they are looking to expand. Their intentions may come as a bit of a surprise, with the potential for them to acquire Gigabyte. According to the article, the rumor may have arised from Asustek looking for ways to combat Foxconn, who is quickly approaching them in motherboard production. It would be beneficial to both companies (Gigabyte and Asustek) to merge:

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.
Gigabyte is a good brand in and of themselves, and they haven't disappointed me yet. I look forward to hearing from both companies on the potential merger, especially with what they plan to do with their respective product lines.

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