“Taiwanese Graphics Card Alliance” to Produce 1.2M Boards Monthly@ 2004/10/05
A report at DigiTimes claims that the 10-member group currently ships 1.0 - 1.2 million graphics cards in total per month, compared to 600 – 800 thousand units for ASUSTeK, 600 – 700 thousand units for Micro-Star International (MSI) and 500 – 600 thousand units for Foxconn and its associated factories.
In late September a Taiwanese web-site released a news-story claiming that Albatron Technology, Tul Corp., Chaintech Computer, Prolink Microsystems and Gainward had formed an industry alliance aiming to reduce the costs of their products to stay competitive with ASUS, who reportedly plans to launch cost-effective X-series graphics cards. Gainward, however, later denied the participation, while Chaintech could not confirm the information.
The alliance reportedly aimed to leverage its combined bargaining power to gain better pricing for graphics chipsets from ATI Technologies and NVIDIA Corp.. However, in addition to graphics processors, makers of graphics cards should acquire some other components, such as print circuit boards or capacitors, that also affect final pricing of the products.
The alliance’s initial goal was to decrease the cost of manufacturing by 10% - 15%, which was likely to be achieved, according to reports. Forming of the alliance may also increase the power of its members on suppliers of graphics processors.