by Anton Shilov
09/09/2005 | 10:01 AM
Chaintech Computer on Friday said it would continue its mainboard business, unlike reported previously, but will just add memory modules into its lineup as well. The company also said it that its new name would be Walton Chaintech Cooperation, following its 25% stake acquired by Walton Advanced Engineering.
<%BANNER[article]%>“Chaintech denies it will fade away motherboard market to clarify the rumors wide spread recently,” Chaintech said in a statement.
On Thursday numerous web-sites published reports that Chaintech had decided to quit mainboard business and concentrate on graphics cards and memory modules. Furthermore, Chinese news-paper Commercial Times, which article was cited by DigiTimes web-site claimed that Chaintech had confirmed the company was gearing up to launch memory module products and would gradually phase out its mainboard business.
“Most people recognize Chaintech brand as its contribution of motherboards and VGA cards. Chaintech shall not only phase-in new module business but also remain the motherboard and VGA card business unchanged,” Chaintech added in its Friday statement.
Currently approximately 60% of Chaintech’s revenues come from graphics cards, whereas the rest comes from mainboards, audio solutions, modems, set-top-boxes and other accessories listed on the company’s web-site. While the company may not totally abandon its mainboard business, in future it may outsource production of mainboards to different manufacturers in order to stay competitive in terms of costs. Sources among mainboard makers recently noted that even top mainboard brands sometimes outsource production to big OEM makers.
Walton Chaintech also confirmed on Friday that it intended to launch own-brand memory modules in the fourth quarter of this year.