Five graphics-card makers to form alliance to strengthen competitiveness

No_Style · Sep 21, 2004, 07:41 PM

Five Taiwan companies, consisting of graphics card makers and second-tier motherboard manufacturers, plan to form a strategic alliance to strengthen their bargaining power for the purchase of graphics chipsets and to improve their competitiveness through the division of product lines, according to sources at the makers.

The five companies are Albatron Technology, Tul, Chaintech Computer, Prolink Microsystems and Gainward.

Ted Chen, CEO of Tul, said the idea to form the alliance was prompted by Asustek’s plan to expand its graphics-card market share by releasing its X-series graphics cards this month. Asustek aims to ship 8-10 million graphics cards this year, up from 6.25 million in 2003.

Some of the graphics-card makers are concerned that Asustek will adopt aggressive pricing to quickly expand its market share, Chen noted.

Other sources pointed out that Asustek will market its Nvidia GeForce 5200-based graphics cards at US$40, compared to US$43 for a similar model launched by Gigabyte.

Frank Tseng, chairman of Prolink, said that the alliance aims to leverage its combined bargaining power to gain better pricing for graphics chipsets from ATI Technologies and Nvidia.

Since Prolink still maintains production facilities in Taiwan, Tseng said that Prolink is willing to provide product development services for its peers to avoid overlap in product development, while others can dedicate their efforts to marketing.

However, the five companies have not yet finalized details of the alliance.
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Source: DigiTimes

**dj_stick** · Sep 21, 2004, 09:33 PM

this is an interesting turn of events

Sep 21, 2004, 07:41 PM	#1
No_Style Styleless Wonder Join Date: Jun 2002 Location: Ottawa, Ontario Posts: 6,034 Rep Power: 0	Five graphics-card makers to form alliance to strengthen competitiveness Five Taiwan companies, consisting of graphics card makers and second-tier motherboard manufacturers, plan to form a strategic alliance to strengthen their bargaining power for the purchase of graphics chipsets and to improve their competitiveness through the division of product lines, according to sources at the makers. The five companies are Albatron Technology, Tul, Chaintech Computer, Prolink Microsystems and Gainward. Ted Chen, CEO of Tul, said the idea to form the alliance was prompted by Asustek’s plan to expand its graphics-card market share by releasing its X-series graphics cards this month. Asustek aims to ship 8-10 million graphics cards this year, up from 6.25 million in 2003. Some of the graphics-card makers are concerned that Asustek will adopt aggressive pricing to quickly expand its market share, Chen noted. Other sources pointed out that Asustek will market its Nvidia GeForce 5200-based graphics cards at US$40, compared to US$43 for a similar model launched by Gigabyte. Frank Tseng, chairman of Prolink, said that the alliance aims to leverage its combined bargaining power to gain better pricing for graphics chipsets from ATI Technologies and Nvidia. Since Prolink still maintains production facilities in Taiwan, Tseng said that Prolink is willing to provide product development services for its peers to avoid overlap in product development, while others can dedicate their efforts to marketing. However, the five companies have not yet finalized details of the alliance. ______________ Source: DigiTimes __________________ "The Best Style Is No Style" Specifications Here