Walton Chaintech announced a cooperation with China-based graphics card vendor Colorful that will mark the company's return to the video card and motherboard markets. The Taiwanese company Walton Chaintech pulled out of these markets in 2006, through the alliance, Colorful hopes to gain R&D capabilities, while Walton Chaintech will be able to rebuild its brand name through taking orders from Colorful.
Walton Chaintech chairman Lu Li-Cheng (transliterated from Chinese), pointed out that the company has many years of experience in motherboard and graphics card production, R&D and marketing and as the company received OEM orders from Colorful, the company expects to gradually return back to branding business in 2013 and is targeting to breakeven in 2012.
Lu also pointed out that market watchers' views that the motherboard and graphics card markets are no longer seeing growth is not thorough; in fact, the two markets are rather stable and still profitable though volumes are not huge.
As for the branding business, Walton Chaintech will target markets outside of China to promote its products along with assistance from Colorful. The two firms' cooperation is also expected to further expand into other consumer electronics products.