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Sources confirmed a report over OCWorkBench that Silicon Integrated Systems will spin its graphics division off into a new company. Xabre will become not only a brand-name of SiS’ graphics processors, but will also be the name of SiS’ subsidiary.

In fact, SiS wanted to promote Xabre brand-name separately from SiS’ own trademark from the very beginning last year. That is why the company acquired a domain name Xabre.com where “SiS” brand-name is not practically mentioned.

This year SiS wants to advertise Xabre heavily, but since SiS chipsets are usually considered as lower-end products, the company needs to popularize another brand-name to be able to sell its graphics solutions into higher-end market segment.

Currently SiS is ramping up the production of Xabre 600 with VIVO capabilities graphics processor. Later this year the company will launch two DirectX 9.0-supproting Xabre II GPUs.

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