Asus breaks off deal with Gigabyte

By Justin Mann on
In mid-2006, Asus and Gigabyte shocked the hardware community when they announced they'd both be pitching in on a shared venture to produce a new line of motherboards and video cards. Just a few months later, Asus has decided to pull out, due to “confusion” of clients and suppliers, among other reasons:

It’s explained the confusion of clients and suppliers, together with the changes of both internal and external factors has lead to this hard decision. In the present environment, the necessity of forming joint venture is no longer as strong as expected, and thus suspension is the best solution for both shareholders, said GIGABYTE’s spokesman.
Gigabyte isn't planning on abandoning the new project, however, even though Asus is taking a huge c hunk of change with them. Gigabyte United will still go forth, with considerably less capital, and will be entirely owned by them. Significant portions of their existing company have already been transferred to the new one, though it is not clear much they will move over.

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