In a bid to further withdraw from low-margin chipset business, Intel Corp. plans to boost its orders to Silicon Integrated Systems Corp. in the third quarter of the year. The move will decrease Intel’s chipset market share, but will also maximize Intel’s profit margins, as the company will not have to sell low-cost chipsets to support sales of its microprocessors.
Intel is projected order SiS671 and SiS672 core-logic sets from SiS in Q3 2007, a news-story citing Chinese-language Economic Daily News (EDN) news-paper at DigiTimes claims. Currently the world’s largest chipmaker only uses SiS662 chipset with its value Desktop Board D201GLY. Adding two more core-logic models means that Intel may plan to reduce the share of its own low-cost chipsets among its own-brand motherboards.
SiS671 and 672 core-logic sets support integrated DirectX 9-compliant graphics core, support DDR2 memory and Intel Core 2 as well as Pentium D processors.
SiS’ quarterly revenues and chipset shipments are expected to increase 30-50% due to orders from Intel. This will not only improve the minor chipset designer financial results, but will also allow the firm to claim much higher revenues than its rival Via Technologies.
Recently SiS announced another major contract with Dell, under which the company sells its SiSM661GX chipset for Dell EC280 low-cost PC for emerging markets.