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ASUSTeK Computer, the world’s largest maker of mainboards, and Intel, the world’s largest manufacturer of microprocessors and supporting products, have possibly broken their partnership in the field of making mainboards. To support its mainboard manufacturing, Intel Corp. inked a deal with Wistron, according to reports from DigiTimes and Economic Daily News.

While Intel has tremendous plans in the mainboards market, the company does not have its own facilities to make this type of products. As a result, the Santa Clara, California-based chipmaker outsourced production to Asian-based mainboard makers. ASUS has been producing mainboards for Intel for quite some time now, but the partnership might come to its end after Intel signed a deal with Wistron.

“Wistron will be Intel’s fourth motherboard contract maker, trailing Foxconn Electronics, Mitac International and First International Computer (FIC)”, a report over DigiTimes and Economic Daily News said.

In case ASUS is no longer listed as an Intel mainboard partner, the companies might have suspended the partnership because of unknown reasons. Among possible causes for the likely break off a source close to both companies suspected that the firms did not succeed in negotiating about pricing of the products.

It is not clear how Intel plans to attain outsourcing of 17-18 million of mainboards this year without ASUSTeK Computer.

Officials for ASUS and Intel could not return with comments immediately.

Discussion

Comments currently: 13
Discussion started: 06/29/04 03:09:36 AM
Latest comment: 08/25/06 12:57:17 PM

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1. 
I'm sure there were a list of discussion items

Prices/margins

Warranty expenses
The degree to which Asus would be responsible for returns on that lovely 775 socket

Business alignment
The degree to which Intel continues to want to behave as a monopoly and lock down the overclocking, and thus threaten a portion of the core business of Asus

Basically the finances probably had many aspects and there may have eventually been no good financial reason for Asus to use its high quality to help a company that seems to be actively trying to harm Asus, at least lately.

I'm sure if this was the case, we'll never hear publicly any details as to what was discussed, but the above is a pretty good basic list.

:)
0 0 [Posted by:  | Date: 06/29/04 09:18:08 AM]
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