Intel and ATI are going to start a marketing plan called "Driving Change", which will target the channel and bundle ATI own-brand graphics cards with Intel own-brand motherboards.
The plan will start on August 2 in North America and Europe, it will offer channel distributors discounts of US$20 to US$30, depending on the motherboard models.
A discount of US$30 is being offered for an ATI Radeon X600-based graphics card bundled with an Intel BOXD925XCV, BOXD925XBC or BOXD915PBLL motherboard.
An ATI Radeon X300-based graphics card bundled with an Intel BOXD915PCYL, BOXD915PCY or BOXD915GAGL board will be US$20 less than the list price, the sources added.
Intel has recently increased its outsourcing of motherboards to Taiwanese contract makers, including Foxconn Electronics (the registered trade name of Hon Hai Precision Industry), Asustek Computer, Mitac International and First International Computer (FIC), the sources noted.
Intel’s total outsourcing of motherboards in 2004 is expected to reach 19 million units, including 12 million units for its OEM clients and seven million units for its own-brand models, according to the sources.
The new marketing initiative is expected to place added pressure on Taiwanese motherboard makers, although the makers said that the impact will not be significant in the near term.
The sources added that it is difficult for Taiwan makers to comment since they rely on Intel for CPUs and chipsets.