USI kisses goodbye to motherboards -

USI has decided that there is not enough interest in its motherboards to continue.

The outfit has been quietly phasing out its motherboard business after losing orders from its largest contract customer Lenovo.

According to Digitimes, USI has confirmed it has lost interest in making motherboards.

It was now into making shedloads of cash from a growth in communication and network storage product lines.

It said its 2010 revenues are at the same level as it had in 2009, although that is not a good thing as the economy was down the loo last year.

Lenovo has been outsourcing its notebook production to ODMs from 80 per cent to 95 per cent. This left only five percent being done in its own factories. Therefore it did not really need componants shipped into its empty factories.

USI had already quit the Abit brand motherboard business and now seems set to leave the motherboard OEM/ODM market completely.

It is a far cry from 2006 when USI bought Abit saying that it expected its annual motherboard shipment to increase to more than 10 million units.   It wound up Abit in 2008.