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Rumors of mergers in Taiwan

by on17 November 2008

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Among motherboard and graphics card makers

Although things are looking drab at the moment in many parts of the industry due to the economic downturn, it now looks like some of the smaller motherboard and graphics card manufacturers in Taiwan are considering a merger with competitors to be able to become more competitive.

A lot of the motherboard and graphics card manufacturers are cutting back both on inventory and production quantity as of right now according to Digitimes, but it seems like this might not be the final solution for some. Although Gigabyte was in a similar situation some time ago, they're no longer one of the companies considering that kind of drastic change and Digitimes lists MSI, Asus and ECS to be in the clear, as well.

However, this leaves us with a fair few smaller companies that just can't compete on their own anymore, mostly due to the lower demand for their products. We have our own guesses as to who this will be, but Digitimes is reporting that it'll happen as soon as within the next three to six months unless the market picks up.

It's so bad for some of the smaller companies that they've stopped production altogether and are trying to sell off old inventory that they haven't managed to shift earlier this year. This is indeed bad news, but it also comes down to bad inventory management, not just a downturn in the economy.

Even Asus has had some inventory and purchasing issues and are now looking into saving some costs on this side of the business, according to the article. However, Asus is also reported to be saying that the production of notebooks and netbooks will remain unaffected by any production cutbacks.

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Last modified on 17 November 2008
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