by Anton Shilov
09/03/2002 | 06:27 PM
According to DigiTimes, Taiwanese manufacturers of memory modules have started to make graphics cards in addition to their current products. They say making a graphics card is profitable and easy, what is more important, this market is more stable than the memory market is.
The equipment used to make memory modules is similar to that used to manufacture the graphics cards. Keeping in mind that some companies among modules makers have already started to manufacture non-DRAM products, it is quite logical for the others to make a number of graphics cards as it eliminates the need to buy additional equipment and opens new opportunities to expand their business. <%BANNER[article]%>
Module makers may use their present sales channels for selling their additional production. It is easy to guess that module manufacturers intend their clients among PC-vendors and system integrators to start using the graphics cards they provide. For example, Taiwanese companies may offer additional discounts on memory modules for those customers, who start using their newly introduced devices. On the other hand, manufacturers may force certain partners to start adopting their graphics cards.
I believe that some DRAM module suppliers will really be able to enter the market with their low-end and middle-end graphics cards. However, I am pretty sure that with competition strengthening in this sector, profit margins will gradually fall down, causing these companies to pay their attention on mainboards and other PCB-based devices.