To keep up with Intel's latest 533MHz FSB (front-side bus) platform, First Tech plans to introduce products based on the newly-launched 845E, 845G and 845GL chipsets. The quoted prices of the three motherboards are said to be 10% lower than those of other first-tier motherboard makers' own-brand products.
Although the Hoxtek motherboards will not be on Taiwan's market shelves until later this month, they hit the China market in the first quarter. Initially, the overall shipments reached around 30,000 units per month. Given their earlier launch, the Hoxtek products in China are still the 400MHz FSB motherboards, of which the low-price, SDRAM-based 845S boards were positioned as the focus products and sold for only 590 yuan.
Despite the low-profile attitude held by Foxconn and First Tech, the new business has made quite a stir in Taiwan's motherboard industry. In fact, for the past year, both first and second-tier motherboard manufacturers have remained wary about Foxconn's increasing participation in the market. With abundant capacity, Foxconn is a formidable rival to first-tier makers in winning OEM orders from international heavyweights. With the same advantage, it has tried to compete with Elitegroup Computer Systems (ECS) and ECS's major shareholder PC Chips in landing contract-manufacturing orders from second-tier makers. Now, by launching own-brand motherboards in the clone market, Foxconn is expected to heighten the already fierce competition in Taiwan's motherboard industry.
Though several manufacturers suspected that Foxconn might suffer in its primary socket business by competing directly with its motherboard clients, the possibility is believed to be minimal in reality, as Foxconn's share in the socket market is as high as 50%.
Targeting the low-price market, First Tech is expected to compete directly with Asustek Computer's new subsidiary Hua Ching (transliterated from Chinese). However, it is still too early to tell which company will be the final winner, given the different problems they have to face. Being the industry leader for years, Asustek has considerable experience in the flexible operations required in clone market, which is something unfamiliar to the more OEM-oriented Foxconn.
Despite the advantage of abundant experience, Asustek will have to face a new challenge in brand management. How to make a clear distinction between the products made by Asustek and those by Hua Ching will be a crucial task for the company to maintain balance between its market image and business expansion.
Source: DigiTimes