X-bit labs

VIA Benefits from Intel’s Refocus of Chipset Business.

Category: Chipsets

by Anton Shilov

[ 09/06/2005 | 08:53 AM ]

VIA Technologies has benefited from Intel’s shift of manufacturing capacities from low-margin desktop chipsets to higher margin mobile products, according to reports from Asian media, VIA’s financial statements as well as comments made by VIA Technologies representatives.

“There has been a shortage of entry-level Intel-compatible chipsets and VIA has managed to take advantage of it,” Michal Lisiecki, marketing manager for VIA in Europe told X-bit labs on Tuesday.

Earlier VIA Technologies announced net sales for August, 2005, of $48.10 million. On a sequential basis, this monthly sales revenue represents a 20.93% increase over July’s figure of $39.77, but is still 15% lower compared to August, 2004. Even though it is typical for chipset companies to increase their revenues in August due to achieving back-to-school season, almost 21% growth is significantly beyond the level of the same period a year ago.

According to Mr. Lisiecki, the company mostly sells Intel-compatible chipsets with integrated graphics cores for entry-level computers.

According to HKEPC web-site, VIA Technologies’ shipments of Intel-compatible chipsets rose tangibly in August due to the fact that the chipset designer had a lot of core-logic components in stock. By contrast, sales of Intel-compatible chipsets from SiS increased moderately, according to the same news-story.

In early August various media reported that Intel shifted its 130nm manufacturing capacities from its entry-level desktop core-logic products that produce relatively low margins to more lucrative mobile components. According to Intel representatives, the company planned to “meet the original commits”, but did not take additional orders, which was likely to spur deficit of chipsets.