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10% Motherboard Price Hike due to Value of Cu + Chinese Minimum Wage Raise - 10% Motherboard Price Hike due to Value of Cu + Chinese Minimum Wage Raise
Fri, Feb 03 2012 | 3:08PM | Filed under: Business / Industry| PermaLink Posted by: STAFF

Motherboard vendors ASUS and Gigabyte are expected to hike their motherboard prices by about 10% as early as the end of the first quarter of 2012, in response to increases in the price of copper and labor costs in China.

Further, Digitimes reports; " Motherboard prices were hiked by 5-10% in early 2011 to reflect increased material costs and the impact of labor shortages, and by 3-8% in April 2011 due to increased costs of some components arising from the earthquake hitting northeastern Japan in March.

Copper pricing has risen from US$8,000 per metric ton (MT) before the 2012 to US$8,600/MT currently, causing hikes in the cost of copper-clad laminates, and in turn production cost of motherboards.

As for labor costs in China, minimum monthly wage in Beijing was hiked from CNY1,160 to CNY1,260 ($184 - $200USD) on January 1, 2012. Shanghai will raise wages from $178 to $203 on April 1, and Shenzhen raised wages from $209 to $238USD on February 1.

ASUS and Gigabyte expect their motherboard shipments in the first quarter of 2012 to increase 10% and 20%, respectively, on quarter."


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