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For the record, the article photos were taken in Taiwan, which has about 80% of motherboard production.
DigiTimes covers this well , and had an article today with overview.
DigiTimes Network & Telecom Daily News
Thursday 24 February 2005
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Taiwan motherboard market overview
Original date: 2005/2/23
Taiwan's success in the motherboard sector has followed the development of Taiwan's IT industry and the explosion in PC use worldwide. Throughout the 1990s, Taiwan's motherboard companies experienced rapid growth and secured their dominance of the world market. By 2003, Taiwan motherboard makers had control of 79.2% of the global market, according to the Taiwan-based Market Intelligence Center (MIC).
However, the motherboard industry is now very mature, and market growth may be quite limited in the future. MIC estimates that, in 2004, Taiwan accounted for 78.9% of the global market, a small drop from 2003. In addition, MIC estimates that although Taiwan's total motherboard shipment volume increased 3.6% in 2004, the total shipment value decreased 2.9%.
Faced with slower growth, the motherboard companies have sought to reduce their costs, increase their market share and diversify their product lineups. Taiwan's motherboard companies have also turned their attention to the China market, where they see huge potential for their business.
This overview is divided into two main parts. The first part provides a general outline of the main Taiwan players in the global motherboard market, and the changing dynamics these makers have faced over the past few years. Much of the focus of this part of the overview is on trends in the market, including the growth of the low-end segment and product diversification. The results of the various companies' strategies are also compared, based on revenue growth and the ability of each maker to create operating profits. The second part of the survey takes a look at how Taiwan's motherboard makers have been faring in the China market over the past few years.
Due to market consolidation, an increasing amount of the global motherboard market is dominated by Taiwan's s first-tier motherboard vendors - Asustek Computer, Elitegroup Computer Systems (ECS), Gigabyte Technology and Micro-Star International (MSI) - and Foxconn Electronics (the registered trade name of Hon Hai Precision Industry). However, since Foxconn and other systems manufacturers such as First International Computer (FIC) and Universal Scientific Industrial (USI) are not generally listed as motherboard manufacturers - since they mainly sell their boards within systems - they will not be included in this overview.
Instead, this overview will focus on the first-tier motherboard vendors, which together have seen their share of the global market increase rise from 44% in 2001 to an estimated 65% in 2004, according to MIC and company data compiled by DigiTimes. The four companies also accounted for more than 80% of the motherboard output from Taiwan motherboard companies in 2004.
The overview will review the overall motherboard revenue and shipment trends over the past few years, and it will also report how the first-tier players have adapted their product mixes in the face of falling ASPs and limited growth. Although diversification is one of the motherboard makers' main strategies, the commitment to new products varies from vendor to vendor, and the results have been mixed.
The results show that Taiwan's first-tier makers are still seeing strong revenue growth, with combined revenues growing 45% in 2002 and 32% in 2003. However, revenue growth has come at the expense of profits, and in the three-year period from 2001-2003, Gigabyte was the only first-tier vendor that was able to increase its operating profits.
With respect to the China market, despite mounting competition from other vendors, Asustek Computer, Gigabyte Technology, and Micro-Star International (MSI), currently dominate almost half of the motherboard market on the Chinese mainland. Now, however, that presence is being challenged both by China-based vendors and their own rivals from Taiwan.
This article is the introduction to a longer report, a DigiTimes.com members-only Industry Overview, that includes the following sections and tables:
-----Original Message-----
From: Brian Ellis [mailto:[log in to unmask]]
Sent: Thursday, February 24, 2005 10:59 PM
Subject: Re: Chinese motherboard factory
I've visited many factories in China and elsewhere in the Far East. Many
are magnificently equipped while others aren't. In the case of China, I
found that private enterprise had the best equipment and the know-how to
use it while State or ex-State establishments were much less so, simply
because they don't have any access to money-taps.
Brian
Chris Murphy wrote:
> Hi Technetters,
>
> I thought that people might be interested in this - it contains photos of
> a Gigabite motherboard factory in China. Check out the automated SMT reel
> storage - these guys dont seem to have any problem obtaining capital for
> their manufacturing processes !
>
>
> http://www.pcstats.com/articleview.cfm?articleid=1722&page=1
>
> Regards,
>
> Chris Murphy,
>
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>
> Visit our website at http://www.codan.com.au
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