Bookmark and Share


A Taiwan-based newspaper reported about graphics chip designer ATI Technologies’ plans to acquire a Taiwanese graphics startup XGI Technology. However, a number of analysts believe that the merge between the two companies seems unlikely.

Economic Daily News, a Taiwanese newspaper, said in its issue that Markham, Ontario-based ATI Technologies was planning to acquire XGI Technology. According to the report, ATI worked with XGI to gain a contract to supply graphics chips for Microsoft Corporation’s Xbox 2 console.

XGI Technology is a spin-off from Silicon Integrated Systems that acquired graphics division of Trident Microsystems last year and delivered a rather unsuccessful XGI Volari Duo V8 Ultra graphics card to the market. Some industry sources believe there are a number of world-class specialists in XGI from overseas, but what is pretty clear, the number of such engineers is not enough to form a large design team for PC graphics chips.

“It does not make sense at all to me. If ATI is going to make acquisitions, it will be to build up their consumer business,” a UBS Warburg analyst Martin Cecchetto told Dow Jones Newswires.

Other analysts noted the same thing, claiming that ATI’s acquisition roadmap is aimed to gain a foothold in the consumer markets, but not to pour fresh blood into PC graphics teams.

Comments from both XGI and ATI Technologies were unavailable, as both firms do not comment on rumours.

While there is hardly a visible point for ATI to acquire XGI Technology for about $75 million, it may make sense for Silicon Integrated Systems and its partner to sell XGI Technology, as SiS’ graphics business has been unsuccessful for a number of consecutive years.

Last year SiS’ John Hsuan said that although Hsinchu, Taiwan-based chipset designer would give preference to graphics cores from its subsidiary XGI, in case there is market demands, SiS may also secure license on incorporating graphics cores from ATI into its chipsets. At that time an ATI Technologies’ representatives said that the Markham, Ontario-based graphics and multimedia company would be happy to have SiS among its clients.


Comments currently: 0

Add your Comment

Related news

Latest News

Wednesday, November 5, 2014

10:48 pm | LG’s Unique Ultra-Wide Curved 34” Display Finally Hits the Market. LG 34UC97 Available in the U.S. and the U.K.

Wednesday, October 8, 2014

12:52 pm | Lisa Su Appointed as New CEO of Advanced Micro Devices. Rory Read Steps Down, Lisa Su Becomes New CEO of AMD

Thursday, August 28, 2014

4:22 am | AMD Has No Plans to Reconsider Recommended Prices of Radeon R9 Graphics Cards. AMD Will Not Lower Recommended Prices of Radeon R9 Graphics Solutions

Wednesday, August 27, 2014

1:09 pm | Samsung Begins to Produce 2.13GHz 64GB DDR4 Memory Modules. Samsung Uses TSV DRAMs for 64GB DDR4 RDIMMs

Tuesday, August 26, 2014

10:41 am | AMD Quietly Reveals Third Iteration of GCN Architecture with Tonga GPU. AMD Unleashes Radeon R9 285 Graphics Cards, Tonga GPU, GCN 1.2 Architecture