A web-site that originally reported about the name of SiS’ subsidiary to deal with graphics today said that the official name of the new company will be Xabre Graphics Inc., or simply XGI. This subsidiary of Silicon Integrated Systems will start its operations on the 1^st of June.

Despite of earlier rumours, the company will be headed by Michael Chen and Chris Lin, who will serve as the chairman and the president respectively. The company will be capitalized at roughly $13 million and will fully belong to SiS, so, there is no surprise that Xabre Graphics Incorporated (XGI) will be headed by men from SiS.

At the moment Xabre Graphics Incorporated (XGI) is preparing to launch its Xabre II graphics processors with DirectX 9.0 support in the third quarter this year. It is expected that the VPUs will address mainstream and higher-end market segments, nevertheless, we cannot state that for sure keeping in mind the fierce competition between ATI Technologies and NVIDIA Corporation in those parts of the market.

Later SiS intends to integrate Xabre and eventually Xabre II graphics cores in its chipsets. Formally SiS and Xabre Graphics Incorporated (XGI) will sign cross-licensing agreements in order to allow each other to use certain R&D achievements. In short, expect integrated chipsets with rather advanced graphics cores to come from SiS.

Finally, we have unofficial information that the new SiS’ subsidiary will manufacture its graphics processors using 0.13 micron fabrication technology at UMC.