Not even eight months after announcing the formation of a joint venture to produce motherboards and graphics cards, HKEPC reports that Asustek and Gigabyte have called off their plans. The joint venture, Gigabyte United, began operations on January 1 and was meant to be co-owned by Asustek and Gigabyte. However, a Gigabyte spokesman told HKEPC that the co-ownership plan was called off today due to a board decision citing client and supplier confusion and "changes of both internal and external factors."
Despite the decision, Gigabyte United will live on as a subsidiary of Gigabyte. HKEPC says Asustek has pulled its $3.92 billion TWD ($118.8 million USD) investment in the venture, though, forcing Gigabyte to revise its plans. Nonetheless, Gigabyte has already transfered its cooling, cell phone, and notebook businesses to Gigabyte United, and the company reportedly doesn't intend to backtrack. HKEPC suggests that Gigabyte might end up renaming Gigabyte United, although the site adds that it's currently unclear whether that will happen.
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