Intel to clear 865G chipsets with price cut in 4Q

Intel will cut prices of its 865G chipset in the fourth quarter of 2006, in an attempt to accelerate inventory clearance prior to the push of Microsoft Vista-compliant chipsets, sources at Taiwan motherboard makers indicated. The quotes for the 865G will be lowered to US$26 in the fourth quarter, down from US$36 at present, the sources noted. For the motherboard makers with the highest volumes, the quotes could be further cut to US$13-15, indicated the sources.

In addition, inventory levels of Intel's 865PE and 865GV are now at a healthy level, brought down by the chip giant's price-cut strategies, the sources added. In the first quarter of 2006, Intel began clearing inventory of its 865PE chipset, without a built-in graphics core. It then, in the second-quarter, focused on inventory clearance of the integrated 865GV, according to the sources.

According to sources that have reviewed Intel's most recent chipset roadmap, shipments of its 865 series (codenamed Springdale) – 865G, 865PE and 865GV – are expected to account for 20% of Intel's overall chipset shipments to OEM companies in the third quarter of 2006. The shipment proportion will drop to 10% in the fourth quarter and further down to around 3% by the second quarter of 2007, when the 965 chipset family will account for 60% of Intel's total chipset output, indicated the sources. Meanwhile, Intel's 946 series will account for 20% of its output in the second quarter of next year, followed by the 945 family with 17%, the sources noted. By the latter half of 2007, Intel expects to have phased out the 865 chipset family, the sources added.

Source: Taiwan motherboard makers, compiled by DigiTimes, July 2006

Article translated by Jessie Shen and edited by Stephen Taylor