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Old Sep 3, 2004, 11:01 AM   #1
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Default Post Asustek and Gigabyte to outsource more graphics-card manufacturing

Asustek Computer and Gigabyte Technology have increased their outsourcing of graphics-card manufacturing to other companies, including industry rivals.

According to market sources, Asustek has reached an agreement with rival Elitegroup Computer Systems (ECS), under which Asustek will outsource monthly production of 300,000 graphics cards to ECS, with shipments starting this month.

The outsourcing coincides with Asustek’s planned September launch of its X-series graphics cards for the entry-level market, the sources noted.

Gigabyte is strengthening its cooperation with Foxconn Electronics (the registered trade name of Hon Hai Precision Industry). Foxconn currently produces motherboards for the company, and Gigabyte will increase its manufacturing outsourcing to include graphics cards, the sources stated.

Gigabyte will outsource the production of 80,000-100,000 Nvidia-based, entry-level graphics cards, or about one-third of its total graphics card production, to Foxconn, said the sources.

Gigabyte aims to boost its shipments of graphics cards to 3.5 million units this year, up from 1.99 million units in 2003.

Asustek and Gigabyte declined to confirm the report.
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Source: DigiTimes
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