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Intel trims 2nd-tier motherboard companies off direct sales


Wednesday, February 2, 2005
Intel Corp. has decided to remove the second-tier Taiwanese motherboard makers from its direct-outsourcing list, according to Stanly Huang, director of Intel's Asia Pacific Marketing & Technical Services.
 
Huang pointed out that Intel recently modified its contract-supplier strategy in line with change of industrial structure, indirectly denying speculations that the adjustments should be associated with the company's corporate-wide restructuring. Eight second-tier Taiwanese suppliers including two system suppliers and several motherboard suppliers were removed from its direct-account list.
 
Asustek Computer Inc., Gigabyte Technology Co., Micro-Star International Co. (MSI) and Elitegroup Computer Systems Co (ECS), which remain on Intel's list, will get better prices and information on new products from Intel than the smaller rivals that will have to deal with distributors.
 
Moreover, Intel has added three major IT dealers such as Synnex Technology International Corp., World Peace Industrial Co., Ltd. and Sertek Inc. to its direct-suppler list. Local industry observers said the second-tier would hit hard this time, some may resort to shutdown or may merge with bigger companies. However, the observers believed that these companies might seek to Synnex for contract orders after an executive at Synnex hinted that they will added new contract suppliers.

By: DocMemory
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