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Dell is increasing orders of graphics processors and chipsets with integrated graphics cores to Silicon Integrated Systems and eXtreme Graphics Innovation, according to reports. The orders are unlikely to drive graphics business of both companies to the top of the hill, but will definitely boost revenues of the Taiwanese chip designers.

DigiTimes web-site said Dell is pumping up orders for SiS’ M650 core-logic with SiS315 integrated graphics core. The computer maker uses the M650 for its Inspiron 1000-series notebooks based on Intel Celeron M processors and aimed at sub-$1000 market. SiS received volume orders from Dell during the first half of the year, now the sources within the company allude that the shipments are going to increase to 100 000 units monthly throughout the third quarter.

XGI Technology, a graphics company partly owned by SiS, is reported to initiate shipments of the XP5 graphics processor for Dell’s Inspiron 5150 notebooks.

Both companies area likely to boost their revenues thanks to design wins with Dell, however, it is not clear whether both get sufficient gross-margins from the deals.

SiS’ and XGI’s design wins with large computer makers typically affect business of other companies who supply chipsets with integrated graphics and mobile graphics processors, primarily Intel Corporation and ATI Technologies. Both North America-based industry giants typically tend to ensure high gross-margins when selling their products, while Asian rivals put tremendous efforts in market penetration despite of weak margins.

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