As we reported less than a month ago, Mitac was going to ransom 60% to 70% of TYAN’s shares. Well, that has happened. As I have learned over here, the formerly US-based company is packing its bags to move the headquarters as well as a part of their research and development lab from the USA to Taiwan.

Mitac International became partner of TYAN that concentrates on mainboards intended for servers and workstations in 1997. For five years time, the China based company managed to become the main supplier of mainboards for their partner from Fremont. The latter generates 60% of its revenues from server and workstation products and around 40% from high-end desktop mainboards. The favourable position on the market helped TYAN to keep the gross margin at about 20% what is admirable for the present situation. However, the laws of the market are the only for all the players. Currently the demand is quite weak and the company’s sales have suffered accordingly.

With establishing the headquarters in Taiwan, TYAN and Mitac score two aims: they reduce operations and development related expenses, both companies now enter the new markets without need to establish any new sales channels. All the products sold under TYAN brand will now be manufactured by Mitac, however, the former keeps their California-based R&D lab for their advanced products, so, do not expect TYAN boards to become worse or less attractive. Additionally, TYAN is going to expand its product portfolio with high-end graphics cards and server barebones in the nearest future.

With TYAN’s sales channels in the USA and Mitac’s channels in Asia-Pacific region, the new joint-venture company has all the chances to join the first-tier mainboard manufacturers club.