Foxconn Electronics (Hon Hai Precision Industry) is planning to quit the branded motherboard market, according rumors circulating from sources at channel vendors in China.
The sources commented that Foxconn recently told its sales department to stop taking orders for some motherboard models, and to stop gathering order volume forecasts for all new models, implying that the company is clearing out its inventory. The sources also added that Foxconn is making the adjustments with a very low profile and will not make an announcement since that could impact its inventory clearing.
Foxconn shipped around six million branded motherboards in 2005, nine million units in 2006, and surpassed 10 million units in 2007. Shipments in 2008 are expected to see an annual growth of around 30%. Taiwan's fourth largest motherboard maker, Micro-star international (MSI), shipped around 18 million units, mostly branded, in 2007, and early this year guided an 10% increase in shipments for 2008.