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Gigabyte and ASUS Form Strategic Alliance
Taipei , Taiwan ; August 8, 2006 â€“ Gigabyte Technology and ASUSTeK Computer Inc. today announced their strategic alliance in motherboards and graphics cards by forming a joint-venture producing Gigabyte branded motherboards.
The new company will have an initial capital of NT$8 billion, with 51% of the company being controlled by Gigabyte and 49% by ASUS. The new subsidiary is expected to be fully operational in January of 2007. Under the agreement, the chairman of the joint venture will be appointed by Gigabyte, as well as three board directors and one board supervisor on the board of directors. The remaining two seats on the board will be assigned by ASUSTeK.
The marriage of two of the world's largest motherboard and graphics card makers is expected to increase their competitiveness in many different fronts, especially in leveraging both companies' economies of scale, research and development, and diverse product lines to achieve greater synergy.