Gigabyte splits into two
Taiwanese motherboard maker Gigabyte Technology has spun out its enterprise business, splitting the company into two.
The move, announced at CES 2023 in the US, will see Giga Computing Technology supply Intel and ARM server boards, Nvidia GPU servers, rack systems and immersion cooling. It will also include the vehicle server and telematics business.
Gigabyte will continue to drive its own growth in its consumer divisions for motherboards, GPUs, laptops, desktops, monitors, PC peripherals, and PC components. These are a low margin, high volume business that is hit by the industry downturn.
Manufacturing
The split will also see both companies explore new manufacturing opportunities across the globe to produce goods in new and emerging markets. This could include manufacturing outside China to avoid issues with the US-China trade war in supplying global data centres.
As two separate entities, the transaction allows both companies to allocate capital and resources differently and stress greater importance on portfolios
In return for the split, Gigabyte will receive 83,360,000 common shares of Giga Computing at NTD $10 per share, valuing the subsidiary at NTD $833m, or US$27m. Gigabyte says the subsidiary creation is simply a group reorganization and will not have an impact on the daily and financial operations of the parent company.
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Gigabyte and Giga Computing have an agreement in place to maintain the same development and support for all Gigabyte-branded enterprise products. These systems and products sold by Giga Computing will, for the time being, continue to use the Gigabyte brand.
“Gigabyte has been going through a transformation to elevate performance and return great value to our shareholders. This is just another extension of our long-term plan that will allow our enterprise solutions better react to market forces and to better tailor products to various markets,” said Daniel Hou, CEO of Giga Computing.
“Although we go by a different name, we will continue operations as we always have, and our customers will continue all the same relationships and have high expectations from our well-established server business unit that offers a diverse product portfolio. We believe our announcement proves our commitment to creating long-term value for our customers, employees, and shareholders,” he said.
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