Intel has been phasing out its branded motherboard business in China over the past six months, and has switched its focus to India and other emerging markets, according to sources from motherboard players.
The sources noted that Intel's branded motherboard business saw excellent shipment performance from 2005-2006 in China, sales have been seeing significant drops as the industry began to mature and shipment growth began to weaken.
In 2009, the company decided to outsource its orders to Foxconn Electronics (Hon Hai Precision Industry) and cut off all investment in branded motherboard R&D.
Intel commented that its motherboard business is intended to foster and enable growth for the motherboard industry by collaborating with industry partners to explore business opportunities. Given that the motherboard industry in China is getting mature, Intel will be gradually phasing out of the China motherboard market. To better consolidate resources, Intel is currently focusing on countries in emerging markets where the motherboard industry is still in the early stages of development.