Taiwanese motherboard makers project hefty shipment for 2004

Jan 13, 2004 Ι Industry In-Focus Ι Electronics and Computers Ι By Ken, CENS
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Taipei, Jan. 13, 2004 (CENS)--Most of Taiwanese first-tier suppliers of computer motherboards have made optimistic forecasts on their 2004 shipments on grounds that enterprises will intensify procurements of newer computers to replace older machines.

Nevertheless, local industry watchers said that despite handsome shipments, makers will see their profits shrink as they are forced to cut prices to scramble for orders. They expected the suppliers to more actively diversify operations in order to mitigate the impact of the bloodletting competition in the computer motherboard market.

The island's No. 1 player in the motherboard industry, Asustek Computer, forecast its shipment to increase 30% from last year to total 40 million boards by the end of this year, a volume that will help the company retain its first place in the world market. Elite Group Computer Systems planned to deliver 24 million boards this year, a sharp 40% gain from 2003, with soliciting efforts focused on OEM-based contracts. Micro-Star International set a goal of shipping 17 million boards this year, a 15% increase from last year.

With the ambitious shipment goal, Asustek expected 2004 revenue to reach NT$300 billion (US$8.8 billion at US$1:NT$34), surging from last year's NT$200 billion (US$5.8 billion) or so. Last year, the company delivered 30 million boards, which was 1.7 folds the amount Elite Group delivered, 1.9 folds the volume Micro-Star quoted and 2.2 folds the quantity Giga-Byte Technology registered the same year.

Elite Group will mostly focus on tapping OEM-based orders from brand-name suppliers this year, a departure from the past strategy of luring clone-type orders from PC retailers. The company estimated OEM-based orders to increase at least 20% throughout this year.

This year, Elite Group's motherboards will target high-performance market with brand "PHOTO," middle-range market with brand "ECS" and budget market with brand "PC Chips." High-performance boards will account for 10% of its total shipments this year.

A new factory recently completed in Kunshan of mainland China's Jiangsu Province has pushed up Micro-Star's combined output capacities of motherboards in the two sides of the Taiwan Straits to two million boards a month and combined capacities of notebook computers to 100,000 to 200,000 systems a month. Added capacity has made the company more confident in achieving annual shipment goal.

Giga Byte will announce its 2004 forecast on Jan. 15 at an institutional-investor conference. Institutional investors estimated the company to ship 15% more boards this year as compared with last year's volume.
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