Circuits Assembly Online Magazine - Report: Foxconn Interested in Asustek Spinoff

TAIPEI – Foxconn Electronics is said to be considering acquiring the operations of Pegatron Technology in an all-stock exchange, the Economic Daily News reported this week.

The companies are rivals in the PC assembly market.

Pegatron was formed earlier this year by Asustek, which moved to split itself into three operations. Pegatron builds PC-related gear; the other two companies – Unihan Technology and Asus – handle enclosures, non-PC contract manufacturing, and branded notebooks and smartphones.

Foxconn declined comment, the paper said. However, "several first-tier OEMs have been in negotiations" with Asustek to acquire Pegatron, the paper said.