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Cheap Chips for Christmas Disappear Short supply	By Alexandru Sima, Hardware Editor 6th of October 2006, 12:47 GMT Adjust text size:


Fubon Securities revealed a report that makes clear the tight supply of low-end Intel Celeron and AMD Socket AM2 CPUs, a thing that became apparent a few weeks ago, with the two manufacturers preparing to accelerate their platforms transition until the end of 2006. As a matter of fact, despite a traditional peak due to seasonal effects, it seems motherboard shipments in Q4 of this year will be scarce. The report shows that fourth-quarter motherboards stocks could suffer from a shortage of low-end Intel Celeron and AMD Socket AM2 Sempr0n chips. Analyst Charles Chou of Fubon Securities is saying "the big board makers are seeing surprisingly weak demand that suggests a lack of entry-level chips catering to emerging markets." More could be revealed next Wednesday when several board makers are due to report financial results, according to Digitimes. Taiwan's major motherboard makers, Asustek Computer, Elitegroup Computer Systems (ECS), Gigabyte Technology, and Micro-Star International (MSI), may have shipped a combined total of 30 million motherboards in the third quarter, up 18% from 25.48 million units in the second quarter. In September, Asustek, ECS, Gigabyte and MSI are estimated to enjoy on-month growth of 12.2-18.5% in motherboard shipments, with Asustek recording the highest rate, according to Chou. However, during the first week of October, the four motherboard makers have seen weaker-than-expected demand, which implies a tighter supply of entry-level CPUs that still see strong demand from emerging markets such as Asia and the rest-of-world (ROW).

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