"Seeing weak Europe and the US economies, while emerging markets such as China are also suffering from weaker-than-expected demand, and tablet PCs are seriously hurting growth in the PC industry, some first-tier motherboard players reportedly are cooperating with second-tier players to jointly purchase components to lower their costs and counter rising raw material and labor expenses, according to sources from the upstream supply chain.
In addition to weak global PC demand, rising costs for key components such as PCBs and IC chips, as well as increasing wages in China are all impacting motherboard players' profitability.
With the cooperation on component purchasing, the sources believe the players will be able to save an additional 5%, as costs for IC chips from makers such as Realtek to see significant drops."
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