Taiwan-based motherboard and graphics card makers are poised to enjoy a particularly strong first quarter of 2022, as shortages of processors start easing and demand remains strong for crypto mining and gaming applications, according to industry sources.
Intel, AMD and Nvidia have gradually ramped up their shipments of PC-related processors and graphic card chips, which, coupled with sustained crypto mining and gaming demand, will bolster sales of motherboards and graphic cards at suppliers including Asustek Computer, Micro-Star International (MSI), Gigabyte Technology and ASRock in the first quarter of 2022, traditionally a low season, the sources said.
The suppliers all posted impressive revenue and profit gains in the first three quarters of 2021, due mainly to sharp increases in unit shipments and prices for graphic cards driven by a strong resurge of crypto mining fever, and partly to successful package sales of motherboards and graphic cards for mining and gaming applications, the sources continued. They have also continued to enjoy robust growth momentum in the fourth quarter.
Prices of virtual currencies have slipped recently but are still relatively higher than earlier past levels, the sources said, and the crypto mining craze is not expected to wane before mid-2022 at least. Accordingly, suppliers of graphics cards will remain able to secure stable shipments in the first half of next year, albeit their ASPs for such cards may slightly trend downward as chips supply shortage at AMD and Nvidia is narrowing quarter by quarter, indicated the sources.
The sources said shipments of motherboards will grow slightly in 2022 from 2021 as a result of Intel addressing its short supply of lower-end processors.
Keyword: Mobo and graphics card makers to embrace strong 1Q22