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Motherboard makers are seeing rising motherboard demand in part due to the lowering of prices of Intel 865 chipset-based motherboards.

Ever since Intel lowered its 865 chipset prices in June, FOB (freight-on-board) wholesale prices for 865-based motherboards have dropped roughly 12.5% from an average of US$80 to US$70, according to pricing reports compiled by DigiTimes.

The price drop has caused significant increases in motherboard orders across all segments of the market, including OEMs, system integrators and the clone market, according to motherboard makers.

Asustek Computer, the largest motherboard manufacturer in the world with an estimated capacity to produce 2.5 million to three million motherboards per month, is seeing capacity utilization above 70%, according to sources. Over half of Asustek’s current motherboard shipments are based on Intel’s 865 chipsets.

Asustek subsidiary ASRock is even partially outsourcing its motherboard manufacturing due to the increase in demand.

According to motherboard makers, the mainstream 865-based boards are slowly displacing boards based on Intel’s value-oriented 845 chipsets. As the 848P chipset and associated motherboards will soon be released, some motherboard manufacturers are beginning to reduce their 845 offerings and allocating resources to the more mainstream market.

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Source: DigiTimes