Taiwan-based TNC Industrial has decided to sell the Gainward brand and branch Gainward Europe GmbH to Palit Microsystems for US$1 million and the net worth of the branch office at the end of 2004 (as certified by a CPA). TNC is a leading Taiwan maker of nitrocellulose fibers and holds a 69% stake in Gainward. Continued losses at Gainward over the past two years forced TNC to decide to sell off its graphics-card business, while re-focusing its efforts on its core electronics-related chemical business, said the sources. However, other market sources pointed out that continuing consolidation within the graphics-card industry and fast growing graphics-card shipments from first-tier Taiwan motherboard makers were the main reasons behind Gainward’s plight. Late last year, Palit boosted its orders when Taiwan-based subsidiary Yuan High-Tech Development, which produced ATI-compatible graphics cards, decided to withdraw from the graphics-card market and gradually switch graphics-card orders back to its parent. The acquisition of the Gainward brand will help Palit to make inroads into the high-end graphics-card market as well as boost its sales in the channels in the US, Europe and Japan, where Gainward-brand graphics cards are highly recognized, market sources said. Palit, which shipped about six million graphics cards in 2004, is currently focusing on the entry-level and OEM segments, the sources said. Source: DigiTimes
