GIGABYTE Spins Off Its Server Business Unit


The enterprise solutions section of Taiwan-based GIGABYTE Technology, which sells all kinds of servers, has been formally separated from GIGABYTE and is now a separate, fully-owned GIGABYTE company. The GIGABYTE name will be used by the new independent firm Giga Computing Technology to promote innovation and growth in the server market.

The GIGABYTE board of directors reached the decision, both the parent company and its new subsidiary agreed that the transaction would create long-term value for GIGABYTE customers that rely on enterprise solutions, as well as the consumer market.

In return for the split, GIGABYTE will receive 83,360,000 common shares of Giga Computing at NTD $10 per share, and this was determined by the estimated value of the subsidiary at NTD $833,600,000.

The establishment of this subsidiary would only involve a group reorganization and have no impact on the parent company’s ongoing business activities or financial standing. A contract between GIGABYTE and Giga Computing states that all GIGABYTE enterprise products and solutions for customers would continue to receive the same level of development and support. For the time being, the systems and products supplied by Giga Computing will continue to be branded with the well-known and reputable GIGABYTE name in the computer industry.

At the same time, GIGABYTE will continue to drive its own growth in its consumer divisions for motherboards, GPUs, laptops, desktops, monitors, PC peripherals, and PC components.

New Manufacturing Opportunities

As two separate entities, the transaction would allow both companies to achieve the following:

  • Increase the efficiency and agility of capital and resource allocation while concentrating on core strengths, developing markets, and high-growth possibilities
  • Under the GIGABYTE brand, distinct identities for consumer and business goods
  • Stronger company culture and improved leading positions in the enterprise sector
  • To speed up revenue growth, place more emphasis on portfolios, productivity, and business processes
  • Investigate new global manufacturing prospects to generate items for emerging and new markets 

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 at 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.”