Abit Computer has joined other companies in outsourcing to Elitegroup Computer Systems (ECS), in a move that illustrates the heightened cost pressure second-tier board makers face in fighting their bigger, cost-efficient rivals. To cut costs, Abit decided in June to source all of its low-end boards to ECS.

Meanwhile, with the partnership between Abit and ECS strengthening, market rumors are circulating that Abit will downsize its plant in Taoyuan County, and that people with links to ECS may buy a substantial stake in Abit? recent issue of 100 million new shares.

The company priced the shares at NT$16 per share. The share placement began on July 9 and will last for a month.