With the scope of power restrictions expanding in China, Taiwanese motherboard makers with plants in eastern China, particularly Jiangsu Province, are planning to increase their outsourcing to other contract makers, according to sources at the makers.
Motherboard makers likely to be affected by the power shortage include Asustek Computer, Foxconn Electronics (the registered trade name of Hon Hai Precision Industry), Micro-Star International (MSI), Gigabyte Technology and Abit Computer.
Due to power shortage, industrial areas scattered throughout Jiangsu Province, including area in Kunshan, Wujiang and part of Suzhou, are reportedly subject to power restrictions one to two days a week, depending on their locations, the sources noted.
Abit plans to increase its outsourcing of motherboards to 30% of its total output from the current 15%, although the company’s plant in Suzhou is still not covered by power restrictions, company sources said. The company’s Suzhou plant has a production capacity of 250,000 motherboards.
Sources at MSI, which has a plant in Kunshan, confirmed that the local government in Kunshan has expanded its power restrictions to the industry sector. However, MSI’s production in Kunshan hasn’t been affected by the power shortage because the plant’s output is still higher than demand.
Asustek said its’ plant in Suzhou still hasn’t experienced any power restrictions, and the company has no plans to outsource motherboards to other makers due its production scale.
Article translated by Steve Shen and edited by Michael McManus
