01.18.2001
Possible price cut for Intel 815EP chipset

It is widely reported in local press that Intel has recently been in discussion to facilitate cutting of 815EP chipset prices, with three Taiwan motherboard companies. The companies involved are Asustek Computer Inc. (2357 ‘Hua Shuo’), Giga-Bit Technology Co., Ltd (2376 ‘Ji Jia’) and Micro-Star International Co., Ltd (2377 ‘Wei Xin’). The lowest price range offered is US$19 -US$21, which is a more than 20% price cut. Intel's Taiwan office denied the news, explaining they would adjust chipset prices every quarter according to market needs. We believe this price cut a sign of Intel's strong intention to recover market share, and it is inevitable that VIA Tech. Inc. (2388 ‘Wei Sheng’), will be forced to follow suit, leading to downward pressure on sales and profits.
Angel Lo