Cheng Uei Precision,
is denying reports that Intel will either invest in the outfit or buy it completely. Intel wants to diversify its supply of PC motherboard socket connectors and doing something with Cheng Uei makes sense.
However a buy out would pit Terry Guo, founder of Hon Hai, and Wei Guo, chief executive of Cheng Uei Precision against each other. They are brothers so this could end up with knives being drawn. Intel does not speculate on market rumours and Cheng Uei pointed out that it doesn't make socket connectors.
But word on the street is that Hon Hai is getting too big. It dominates the electronics manufacturing service market, churning out gadgets for the likes of Apple, Hewlett-Packard, Dell, and Sony.
If someone like Intel were to prop up Cheng Uei then it would give Hon Hai a run for its money. According to Information Week
, when the likes of Intel or Dell think one supplier is getting too dominant so they try to nurture another one so they can play them off each other and keep prices lower.