A collection of five graphics card producers and smaller-scale motherboard makers are banding together fend off the expansion of Asus and Foxconn. C.P. Technology, Prolink, Albatron, Gainward, and Chaintech are planning to initiate their cooperation with a strategic alliance to jointly procure from chip suppliers.

 

The coalition has not ruled out the inclusion of yet more players, and has even hinted that a five-way merger could result. However, citing the complexity of such a merger, the companies have indicated that such a move would not be likely over the short term.

 

Rather, an extension of cooperation would first move into more production-related areas. For example, Prolink, which currently retains a larger share of capacity in Taiwan, has proposed that it could offer product development services. It has been said that this division of labor would help lower costs and allow some makers to focus more resources on branded businesses.

 

More specific details, however, are still being worked out among the parties.