Gigabyte to set up maintenance center in Czech Republic

First-tier motherboard maker Gigabyte Technology has followed Asustek Computer’s step to establish a maintenance center in the Czech Republic, with a total investment of NT$25 million, to service European clients in shorter time and lower freight costs, according to the Chinese-language Economic Daily News yesterday.

Gigabyte, however, said that the actual investment amount has not yet been set, but the maintenance center is expected to be operational by the end of the year at the earliest.

The European market accounted for about 39% of Gigabyte’s channel sales in the first half of this year, followed by the Asia-Pacific region with 31%, pan-America market with 16% and 14% from the Greater China area, according to the company. For the first half, the sales ratio between the OEM and channel markets were 2.4:7.6.

Sales contribution of Gigabyte’s motherboard division climbed to 64% in the first half, up from about 50% during the same period 2004. Despite the strength in the motherboard segment, the maker saw its gross margin slide from 2.4% to 11.4% in the first half of this year.

For the latter half of this year, Gigabyte anticipates seasonal peak demand and chipset shortage should improve its gross margin positively, as well as pushing up its product average selling prices (ASPs).

Taiwan's Market Intelligence Center (MIC) saw a declining ASP for motherboards in the first half, as demand for entry-level PC products was stronger-than-expected.

Source: company, compiled by DigiTimes, September 2005.

Source: TSE, compiled by DigiTimes, September 2005.

Source: MIC, compiled by DigiTimes, September 2005.

Article translated by Jessie Shen and edited by Jessie Shen