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Tuesday, December 28, 2004
Asustek?s shipment target of 10-12 million graphics cards in 2005 means more competition

Asustek Computer?s goal of shipping 10-12 million graphics cards in 2005, up about 33-62% from the 7.4-7.5 million units estimated for this year, will mean more competition for OEM and clone orders among Taiwan graphics-card makers in the coming year.

If realized, Asustek will replace Micro-Star International (MSI) as Taiwan?s largest graphics-card maker, the sources noted.

MSI, currently the No. 1 graphics-card maker, will only retain its position for 2004, with projected shipments of 7.5-7.6 million units, the sources said.

However, MSI?s graphics-card shipments are expected to grow about 5.3-5.7% on-year and reach eight million units in 2005, lagging far behind Asustek?s shipment target, the sources added.

In addition, MSI is also expected to face strong competition from two other makers, Tul and Leadtek Research, which have recently shifted their marketing efforts from the clone market, where they had previously put their greatest emphasis, to focus on securing more OEM orders, the sources stated.

Sources at Gigabyte and its subsidiary Info-Tek Corporation (ITC), the vendor of GeCube-brand graphics cards, said, however, that they will step up efforts to win graphics-card orders from system integrators (SIs), in addition to ODM and clone orders.

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