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Pentium 4 Chipsets: Cheaper is Only for Free! [04/10/2002 10:27 PM]
by Anna Filatova

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Having lived through some upsurge in the first months of the year, the mainboard sales started moving down again, so that the chipset prices dropped to a scarily low limit. According to the reports coming from the Big Four members, they are now getting the pretty popular SiS645 chipset for $15 per unit. Moreover, some of the last orders contained the price set to… $9.50 (the production cost of SiS645 lies approximately around $12 plus license fees to Intel). It seems that SiS is trying to sell out the old SiS645 as quickly as possible and give way to more up-to-date SiS645DX. I don’t have any other explanation of what could push SiS to start selling chipsets at a price lower than the production costs even (I doubt that it is all about charity :)

But this is not the end of the story. Intel is also forced to reduce the prices, as the competitors start pressing too hard. The company is selling i845 B0-stepping chipset (with DDR SDRAM support) to the Big Four members for $24. To tell the truth, this is a certain record for Intel’s mass chipsets. Not so long ago only i810 family could boast low prices like that.

As for VIA chipset prices, the situation is still not very clear. What I know is that P4X266A cost a little bit below $20 in the end of March (see this news story). However, they will hardly keep reducing the prices, as they have no fabs of their own.

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