Chaintech to exit motherboard business

  • Thread starter Thread starter Ed
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Ed

http://www.digitimes.com/news/a20050908PR206.html
[Thursday 8 September 2005]

Second-tier motherboard maker Chaintech Computer plans to phase out its
motherboard business and introduce a new memory module product line in
October, as IC testing and packaging house Walton Advanced Engineering
has become Chaintech’s largest shareholder with a 25% stake, according
to the Chinese-language Commercial Times report today.

Chaintech confirmed that the company is gearing up to launch memory
module products and will gradually phase out its motherboard business.
However, the launch date of the new product line has not been revised.
Despite its plan to exit the motherboard market, Chaintech will carry on
its graphics card business, which accounts for about 60% of its revenues
at present, the paper indicated.

In a company filing with the Taiwan Stock Exchange (TSE) yesterday,
Chaintech’s board of directors approved for Walton to take four director
seats and one supervisor seat on Chaintech’s board of directors.
 
http://www.digitimes.com/news/a20050908PR206.html
[Thursday 8 September 2005]

Second-tier motherboard maker Chaintech Computer plans to phase out its
motherboard business and introduce a new memory module product line in
October, as IC testing and packaging house Walton Advanced Engineering
has become Chaintech’s largest shareholder with a 25% stake, according
to the Chinese-language Commercial Times report today.
Click to expand...
Strange. From one no-margin business, down the food chain a step or two.
 
http://www.digitimes.com/news/a20050908PR206.html
[Thursday 8 September 2005]

Second-tier motherboard maker Chaintech Computer plans to phase out its
motherboard business and introduce a new memory module product line in
October, as IC testing and packaging house Walton Advanced Engineering
has become Chaintech’s largest shareholder with a 25% stake, according
to the Chinese-language Commercial Times report today.

Chaintech confirmed that the company is gearing up to launch memory
module products and will gradually phase out its motherboard business.
However, the launch date of the new product line has not been revised.
Despite its plan to exit the motherboard market, Chaintech will carry on
its graphics card business, which accounts for about 60% of its revenues
at present, the paper indicated.

In a company filing with the Taiwan Stock Exchange (TSE) yesterday,
Chaintech’s board of directors approved for Walton to take four director
seats and one supervisor seat on Chaintech’s board of directors.
Click to expand...

Hmm, that's unfortunate. I've been extremely pleased with my
Chaintech motherboard, I was actually planning on buying another one
to replace it in my next computer upgrade cycle. Their boards seem to
work pretty well and they are very reasonably priced.

Odd that they're planning on getting IN to the memory module business
though! Maybe things have changed in recent years with "premium"
memory modules, but traditionally that has been a total zero-margin
business.
 
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