Taiwanese second-tier motherboard maker Epox Computer plans to migrate its remaining 5-10% production capacity in Taiwan to contract manufacturers in China, according to company CEO Jerry Feng.

The company began cutting operating costs by moving 70% of production to China earlier this year, as reported on January 19. As part of the cost-down efforts, Feng said that the company will outsource 100% of production lines to China by the end of this year.

Epox shipped 791,000 motherboards in the first five months of 2004, climbing 14.3% on-year. As the second quarter is traditionally a slow part of the year for motherboard makers, shipments this quarter should grow 25% on quarter. Shipments in the third quarter are expected to remain flat as in the first quarter. Epox used to focus more on high-end motherboards. However, the company is targeting the entry-level market with seven to eight new products this year.

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