Rumors say that stocks are low

Nov 9, 2005 14:46 GMT  ·  By

Graphic card demands began rising from September as a result of seasonal effects, and producers develop for the home user market have great chances to get increased revenues in the fourth quarter of this year. Despite this fact, the supply of GPUs (Graphic Processing Unit) is short, except the Radeon 9550 Series.

Rumors surrounding graphic card makers say that supplies of ATI's Radeon 9250, X300, and X550 are short at present, because of an IC substrate shortage. Although ATI launched its 90nm process R5xx series in the second half of the year, the Radeon X1800, X1600, and X1300 are also limited in supply.

In contrast, monthly shipments from motherboard makers whose products get diversified often and include onboard graphics had more sales than the graphic cards only producers. Micro-Star International and Asustek Computer currently maintain monthly graphic cards shipments of more than 600,000 units, whereas Gigabyte Technology managed to increase its monthly shipments to approach 400,000 units.

For the first nine months of 2005, graphic card makers such as Tul, Leadtek Research, Prolink Microsystems, and Yuan High-Tech Development all posted negative earnings per shares. Yuan said in an interview in October 2004 that it decided to withdraw from the graphics-card market.

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