Giga Computing Technology

History

2022: Creation of a company

In mid-March 2022, Gigabyte Technology announced the allocation of a server business to a new subsidiary, Giga Computing Technology. The Taiwanese manufacturer plans to complete the restructuring by January 1, 2023.

Network Communication Business Group is transferred to Giga Computing Technology, whose assets are estimated at NT $834 million $29.25 million. Under the terms of the agreement, Gigabyte will buy 83.36 million shares of Giga Computing at a price of NT $10 apiece.

Gigabyte has separated the server business into a new company

Gigabyte noted that transferring the server business to a new legal structure will not affect the work of related departments and will not affect the shareholder value of assets.

According to company spokesman Michael Yang, Network Communication Business Group is mainly engaged in the development of servers, as well as AI systems and high-performance solutions for data centers and peripheral computing. The company supplies products to Europe and North America.

Some market observers cited by DigiTimes believe that the transfer of the business group is being carried out to prepare for an IPO in the near future. According to other experts, this step will allow Gigabyte to draw a clearer border between two growing business areas - servers and motherboards/video cards.

By March 2022, about 40% of Gigabyte's total revenues are accounted for by the sale of video cards, 30% - motherboards, servers - 20%. The remaining products combined provide about 10% of the turnover.

According to DigiTimes, initially Gigabyte expected that its server business in 2022 would grow by 50% compared to 2021, but the cooperation of the Taiwanese company with Yandex could be influenced by the special operation of Russia in Ukraine that began on February 24, 2022. Due to this conflict, Gigabyte will receive about 5% of its planned revenue, the company predicts.^[1]

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