In order to hit their 2012 shipment targets, motherboard vendors significantly increased shipments in November-December 2012 although market demand did not rise, and consequently inventory levels in retail channels have risen to above healthy levels. In response, vendors have made large cuts in orders to component makers and ODMs, according to Taiwan-based supply chain makers.

Asustek Computer has had its ODMs reduce shipments by at least 100,000 units a week, the sources said. While Asustek expects to ship five million motherboards in the first quarter of 2013, decreasing by 500,000 units or 9.1% on quarter, the company and other Taiwan-based vendors may see 15-20% sequential drops in first-quarter shipments, the sources indicated.

In comparison, Gigabyte Technology kept abreast of Asustek in January-February shipments and stands a chance of surpassing Asustek in first-quarter shipments, the sources noted

Clear the excess inventories expected to take some time and vendors' orders will rebound in mid-May along with Intel's launch of 8-series chipsets, the sources said.