With the China government set to stop issuing Internet cafe licenses starting on July 1, 2007, motherboard makers including Foxconn Electronics (Hon Hai Precision Industry), Asustek Computer and Elitegroup Computer Systems (ECS) are expected to see a decrease in sales in the short term, according to a Chinese-language Economic Daily News (EDN) report citing sources at motherboard makers. The Internet cafe market has been considered an important sales channel in China for motherboard makers the sources added.

The sources noted, with the desktop PC market already close to saturation along with pricing competition from brand-name vendors such as Hewlett-Packard (HP) and Dell, the channel motherboard market has been shrinking over the past few years, while the brand-name market has expanded. The China government's restrictions could lead to a boost in sales of branded desktop PCs for home-use, added the paper.