TAIPEI, TAIWAN -- Yu Fo Electronic, a PCB motherboard supplier with manufacturing locations in Taiwan and China, reported declining sales and an overall factory utilization rate below 50% for the fourth quarter.

This news follows announcements by Asustek Computer and Gigabyte Technology of sharp declines in shipments for the fourth quarter. Asustek and Gigabyte estimated fourth-quarter shipments would drop by 10% to 25%.

According to sources, Yu Fo has reduced its workforce in Huizhou China by 300 people. This is expected to reduce labor cost by approximately $60,000 monthly. The company has also stopped some production lines in Huizhou, China and Taoyuan, Taiwan to cope with weakened demand.