ASUS, GIGABYTE, and MSI to Raise Motherboard Prices in Q3

Motherboard manufacturers are currently facing a challenging situation where declining sales are impacting their revenue, and rising component costs are eroding their margins. According to the latest update from Board Partners, major motherboard manufacturers, including ASUS, GIGABYTE, and MSI, are expected to introduce a series of planned price increases to maintain their margins. Taiwanese motherboard makers are experiencing price increases across their supply chain, with the cost of bare PCBs used in manufacturing these motherboards expected to rise by at least 50% this year, significantly impacting component costs. Raw materials used in manufacturing, such as copper, are also in high demand, leading to price increases. Other electronic components like control chips, power devices, and surface-mount capacitors, such as MLCCs, are experiencing significant bottlenecks.

As a result, motherboard manufacturers are facing substantial price increases from their supply chain and are being forced to implement price hikes this quarter. The total bill of materials (BOM) for each motherboard design varies, as every platform uses a different number of capacitors, power components, and control chips. Additionally, each motherboard uses a different number of PCB layers, affecting the BOM. This means we are not yet certain how much motherboards will be impacted by the component shortage, as only motherboard manufacturers know exactly how much they need to adjust their pricing percentage-wise, likely on a per-motherboard SKU basis.