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Taiwanese media sources continue to discuss SiS’ decision to spin off its graphics chip division later this year. Today DigiTimes web-site reported some additional details about the deal. They said that SiS’s graphics chips division will be called Tu Chiang and will be fully independent from the number two chipset designer in Taiwan.

The new subsidiary will formally start to work already in May or June and will be headed by Jackson Hu, who will be chairman of the board, and Chris Lin, who will serve as president of Tu Chiang Technology. The company will be capitalized at $14.93 to $17.15 million at least, but presently there is no information whether UMC, the co-owner of SiS will invest in the new company or not.

Since Tu Chiang Technology will be an independent company, it will be free of amortization expenses for SiS’ semiconductor fab what may help the company to become profitable shortly.

We still do not know for sure who will manufacture graphics processors for the startup. Considering that UMC wanted to fully take care of SiS’ 0.13 micron technology, we can assume that Tu Chiang will utilise UMC’s capacities for producing its next-generation Xabre graphics processors.

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