Following its foray into graphics cards, motherboard maker Micro-Star International (MSI) is diversifying further by launching own-brand LCD monitors and optical storage drives. The market believes that the moves will facilitate MSI's development in the barebone systems sector.
According to sources, MSI began shipping LCD monitors to the China market in March. MSI has outsourced orders to monitor manufacturer Top Victory Electronics (TPV), the producer behind the AOC brand.
In addition, MSI plans initial production of CD-ROM and CD-RW drives to start in May at its Baoan, Shenzhen (Guangdong Province, China) factory. This is not MSI's first attempt to enter the optical storage drive business. In 2001, the company invested NT$208 million for a 59.93% stake in Taiwanese optical storage drive maker Accesstek.
Declining motherboard profits has pushed manufacturers to diversify in recent years. In the first quarter of 2002, companies such as Asustek Computer, Elitegroup Computer Systems (ECS) and MSI generated nearly 50% of their revenues from non-motherboard operations. In the second quarter, new businesses are expected to remain the sales driver for the companies.

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