ECS to phase out its DIY motherboard unit

Since late last year rumors indicated one or more second-tier motherboard makers would leave the market due to fierce competition from the first-tier brands in this shrinking market. Now DigiTimes reports that ECS will no longer actively market its own-brand DIY motherboards. The firm will still undertake ODM/OEM production if clients have demand but has shifted its focus from DIY motherboards to ODM production of notebooks and tablets as well as own-brand mini-PCs.

This is because global demand for DIY motherboards is shrinking and ECS has been faced with increasing price competition from Asustek Computer and Gigabyte Technology, the two largest Taiwan-based vendors, especially in the China market, the sources said. Under the situation, another Taiwan-based DIY motherboard vendor is expected to follow suit by quitting the own-brand market in 2016, the sources indicated.

The report also notes ASRock, MSI and Biostar are encountering the same situation as ECS. Second-tier motherboard makers are hurting as ASUS and Gigabyte are fighting out a price war to maintain shipments and marketshare.

ASRock focuses on marketing of mid-range and high-end DIY motherboard models in 2015 and, in addition, has extended own-brand production to servers and industrial motherboards, the sources said. Micro-Star and Biostar are expected to ship about 6.0 million DIY motherboards and below 3.0 million units, respectively, in 2015, the sources indicated.