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Mobo and graphics card makers to enjoy handsome profits in 1H21
Monica Chen, Hsinchu; Jessie Shen, DIGITIMES 0

Taiwan-based motherboard and graphics card makers are poised to generate handsome profits in the first half of 2021, and may see profits for the year hit record highs, according to market sources.

Asustek Computer, also a brand notebook vendor, has enjoyed rising product ASPs and shipments since 2021, the sources said. Asustek already saw its net profits hike over 10 folds on year in the first quarter of 2021.

Asustek saw revenue from its brand business climb 40% from a year earlier to NT$38.6 billion (US$1.4 billion) in May 2021, when consolidated revenue increased 36% on year to NT$41 billion. The vendor said that the visibility of orders for all its product lines remains brisk encouraging it to work more closely with its suppliers and partners.

Asustek's consolidated revenue for the first five months of 2021 came to NT$196.3 billion, rising 58.3% from a year ago, and outperforming those generated during the same period in previous years.

Fellow company Gigabyte Technology enjoyed a 304.6% on-year surge in net profits in the first quarter of 2021, and saw its revenue hit a record high for the third consecutive month in May. Gigabyte is also among the beneficiaries of bullish graphics card demand and pricing.

Robust graphics card and gaming notebook shipments, and rising product ASPs, boosted Micro-Star International's (MSI) net profits to a record high of NT$4.17 billion in the first quarter of 2021. The company disclosed its cumulative 2021 revenue through May increased 57.3% on year to NT$78.76 billion.

Some market observers have expressed concerns about a substantial slowdown in cryptomining demand and notebook sales in 2022, however. It remains to be seen whether Taiwan-based motherboard and graphics card makers will be able to maintain their sales and profit growth momentum next year.

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