Lenovo, Elitegroup to work together on servers

China's Lenovo plans to source server mainboards from Elitegroup, and will design boards for a licensing fee.

Lenovo Group will work with a Taiwanese company to design and source certain server parts, another sign of Lenovo's ability to create new business from the PC division it bought from IBM earlier this year.

Taiwan's Elitegroup Computer Systems will increase its shipments of server mainboards to Lenovo this year and will also start producing Lenovo-designed server boards to sell in other markets, Adam Chou, a marketing director at Elitegroup, said on Friday.

Lenovo will also collect licensing fees from Elitegroup on the server boards the Chinese company designs.

Currently, Lenovo sells servers only in China. In the future, Elitegroup will sell the Lenovo-designed server boards in new markets, mainly developing countries such as Brazil, India and Russia.

Market research company iSuppli forecast recently that Lenovo would leap into ninth place in the global chip purchasing ranks this year, thanks to its new component sourcing power after the acquisition of IBM's PC division.

Lenovo completed the US$1.25 billion deal with IBM in May, transforming Lenovo into a US$13 billion a year computer powerhouse with 19,000 employees and expected shipments of around 14 million PCs.

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