Motherboard manufacturer MSI: Production line transfer will test cost control

Motherboard manufacturer MSI said that judging from the current market conditions, May was better than April, and it can be expected that June will also be better than May. As for Intel's newly launched ninth-generation processors, related new products can also drive sales, but the benefits are limited in the off-season. Looking ahead to the future market, the back-to-school rush in the third quarter should be better. As for the mining market, which has begun to warm up recently, MSI emphasized that it will no longer rush to seize opportunities to make money, but if customers buy gaming graphics cards for mining, it is optimistic.

MSI General Manager Jiang Shengchang said that the company had previously set a goal of 10% growth in gaming laptops, which is achievable. At the same time, the prices of gaming laptops also showed signs of rising, with the average unit price reaching approximately US$1,300-1,400. However, Jiang Shengchang also emphasized that the market competition is fierce and the company's focus is to maintain market share and profits.

Like Acer, MSI has also seen the market opportunities for creator laptops. Jiang Shengchang said that creators require that what they create on a laptop should look the same even when viewed on an external monitor. This is a challenge and also MSI's niche. MSI's current shipments of laptops for creators account for about 15-20% of the total laptop shipments, and the goal is to exceed 20%.

As for how to respond to the possible impact of a 25% tariff in a future trade war, Jiang Shengchang pointed out that shifting production lines would be one way. Currently, there are a small number of laptop production lines in Taiwan, and the scale may need to be increased. It is estimated that the monthly production capacity will be increased from 1,000 units to around 25,000 units, which is equivalent to bringing all laptops sold to the United States back to Taiwan. In addition, MSI's graphics cards sold to the United States are currently all produced in Taiwan.

Jiang Shengchang admitted that the adjustment of production lines is a test of cost control. Considering that about 25% of MSI's laptops are sold to the United States, even if the laptops originally produced in China and sold to the United States are brought back to Taiwan, the remaining 75% of production capacity will still have to bear 100% of the cost of the mainland production line. In addition, as the Taiwan production line expands, the cost will also increase simultaneously, so the overall cost is pushed up.