Asustek to take half, say sources
Intel is expected to ship 10 million entry-level 865-series chipsets in the second quarter, with half of that amount going to motherboard maker Asustek Computer, according to industry sources. The chipsets are rumored to be priced as low as US$13 or below, lower than competing chipsets from other vendors.
Asustek declined to give details, but it said that the speculated quantity and prices are incorrect.
Since Intel resumed supply of its 865-series chipsets earlier this year, Asustek and the other major motherboard makers in Taiwan – Gigabyte Technology, Micro-Star International (MSI), and Elitegroup Computer Systems (ECS) – have already taken delivery of about a million units each, the sources indicated. The five million rumored to go to Asustek in the second quarter would represent about 40% of the company's output for the quarter, estimated from recent media reports.
The sources added that ECS will receive a few hundred thousand units of the second-quarter 865-series chipsets from Intel. It would seem unlikely that the remainder would be split solely between Gigabyte and MSI and that would raise the possibility that other large manufacturers of motherboards, such as Foxconn Electronics (the registered trade name of Hon Hai Precision Industry), will receive large quantities.
The official unit price for the 865 series is currently US$35-36, but motherboard makers paid about US$20 for the chipsets earlier this year, the sources revealed. The price for the second-quarter shipments is said to be below US$13, even lower than the prices for equivalent chipsets offered by Silicon Integrated Systems (SiS) and VIA, the sources indicated.
SiS said that it had heard from clients that Intel would be shipping 10 million 865-series chipsets in the second quarter, but none of its clients have changed their orders.
VIA said that, if Intel continues increasing its 865-series shipments, it will have a major impact on the low-price chipset market.
Sources with the motherboard sector commented that Intel resumed the 865-series chipsets against its policy of migrating to higher-margin products, but it was necessary to retain the company’s market share and to meet growing demand from emerging markets amid strong rivalry from Advanced Micro Devices (AMD).
Intel expects that the 865 series will account for 30% of its total chipset shipments for the first half of this year, and, by the end of the year, the proportion of the 865 series will decrease to 10%, according to the sources.
Intel is expected to ship 10 million entry-level 865-series chipsets in the second quarter, with half of that amount going to motherboard maker Asustek Computer, according to industry sources. The chipsets are rumored to be priced as low as US$13 or below, lower than competing chipsets from other vendors.
Asustek declined to give details, but it said that the speculated quantity and prices are incorrect.
Since Intel resumed supply of its 865-series chipsets earlier this year, Asustek and the other major motherboard makers in Taiwan – Gigabyte Technology, Micro-Star International (MSI), and Elitegroup Computer Systems (ECS) – have already taken delivery of about a million units each, the sources indicated. The five million rumored to go to Asustek in the second quarter would represent about 40% of the company's output for the quarter, estimated from recent media reports.
The sources added that ECS will receive a few hundred thousand units of the second-quarter 865-series chipsets from Intel. It would seem unlikely that the remainder would be split solely between Gigabyte and MSI and that would raise the possibility that other large manufacturers of motherboards, such as Foxconn Electronics (the registered trade name of Hon Hai Precision Industry), will receive large quantities.
The official unit price for the 865 series is currently US$35-36, but motherboard makers paid about US$20 for the chipsets earlier this year, the sources revealed. The price for the second-quarter shipments is said to be below US$13, even lower than the prices for equivalent chipsets offered by Silicon Integrated Systems (SiS) and VIA, the sources indicated.
SiS said that it had heard from clients that Intel would be shipping 10 million 865-series chipsets in the second quarter, but none of its clients have changed their orders.
VIA said that, if Intel continues increasing its 865-series shipments, it will have a major impact on the low-price chipset market.
Sources with the motherboard sector commented that Intel resumed the 865-series chipsets against its policy of migrating to higher-margin products, but it was necessary to retain the company’s market share and to meet growing demand from emerging markets amid strong rivalry from Advanced Micro Devices (AMD).
Intel expects that the 865 series will account for 30% of its total chipset shipments for the first half of this year, and, by the end of the year, the proportion of the 865 series will decrease to 10%, according to the sources.