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Monday, September 7, 2009

Intel G31 chipset shortages to get worse in 4Q09 as Intel cuts back supply

By Monica Chen, Joseph Tsai, 7 September 2009

Supplies of Intel's G31 IGP chipset are expected to become even tighter in the fourth quarter of 2009 as Intel plans to reduce the proportion of the chipsets in its total shipments from 50% in the first quarter, to 25%, according to sources at motherboard makers. Intel said it could not comment on supply issues, but added it continues to work with the industry to meet demand for its products. Although Intel hopes motherboard makers will transition to the G41 chipset, motherboard makers are unwilling to adopt the new chipset as its price of US$7 (US$4-5 for first-tier makers) is higher than for the G31. Intel plans to raise the shipments proportion of the G41 to 25% in the fourth quarter. The tight supply of G31 chipsets has already caused a supply gap of around 20% in the third quarter and the percentage may reach 50% in the fourth.

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