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Asustek to spin off motherboard manufacturing to new entity!

December 13th, 2009 No comments

SHOCKING news today, Asustek has decided to…

Taiwan’s Asustek Computer on Friday said it would spin off Pegatron Technology, a subsidiary which makes more than half of the world’s computer motherboards, distancing itself from the business which made it into a familiar name in the computer industry.

The company is following a similar path to that taken 10 years ago by Acer, which has since gone on to become the world’s second-largest PC maker behind Hewlett-Packard. While its Asus brand is still only a small player in the global PC market, its successful Eee PC low-cost computer series, launched in 2007, helped to pioneer the netbook market and gave its Asus brand a position on electronic store shelves particularly in Asia and the US.

From XBIT Lab’s news article:

Asustek Computer, the world’s largest maker of mainboards, has decided to completely spin off its mainboards and graphics cards manufacturing arm Pegatron Technologies, the company said this week. The move will allow Asus to become more competitive in terms of branding, but will further withdraw the firm from the actual manufacturing.

According to a statement posted with Taiwan Stock Exchange, Asustek company had convened a board meeting to resolve the spin-off of its ODM business. As a result of the meeting, Pegatron Holding, the company that made virtually all Asus-branded motherboards, will issue two billion new shares to a number of shareholders.

I sure hope the quality and stability of the boards do not suffer. Read more from the Financial Times or XBIT Labs. When it comes to solid boards you can’t go past ASUS, XFX and Gigabyte (bang for buck!).

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