Mainboard business of Chaintech, a well-known second-tier maker of motherboards in the past, would be gradually phased out, the company is reported to have indicated. This is not the first time that Chaintech is reported to quit mainboard business, however, the information transpires as Chaintech’s mainboard market presence is negligible.

Walton Chaintech, a company that currently tests memory modules and makes mainboards, is about to enter NAND flash memory, will phase out its mainboard business eventually, reports DigiTimes web-site, citing Chinese tabloid Apple Daily.

Approximately a year ago numerous media sources reported that Chaintech had decided to quit mainboard business and concentrate on graphics cards and memory modules. Furthermore, some even said that the company had confirmed it was gearing up to launch memory module products and would gradually phase out its mainboard business. The company denied at the time it would quit the mainboard business.

IC testing and packaging house Walton Advanced Engineering (Hua Dong) acquired a 25% stake in Chaintech and was said transform the company into a supplier of memory modules and graphics cards, it was reported last year.

Back in mid-2005 approximately 60% of Chaintech’s revenues came from graphics cards, whereas the rest comes from mainboards, audio solutions, modems, set-top-boxes and other accessories listed on the company’s web-site.