Xabre Graphics Incorporated, a Silicon Integrates Systems subsidiary, has announced today that it would acquire graphics chip unit of Trident Microsystems based in the USA as a result of Trident’s restructuring initiative.

The move was made in order to expand product portfolio, especially portfolio of graphics chips for notebooks, as well as in order to destroy a competitor. Trident will initially own 30% of XGI when the transaction is completed. XGI's new management team will also consist of Trident's graphics management team. Financial terms of the deal were not disclosed.

Despite of the fact that Trident Graphics is not a really successful graphics company today, when the teams of XGI and Trident become one, it will have larger potential. In addition, XGI will receive Trident’s sales and marketing teams as well as ties in the USA.

Trident will concentrate on its digital TV business. This is the second PC graphics company to concentrate on consumer electronics. In 2000 S3 sold its graphics division to VIA Technologies and started to deal with various consumer applications under SONICblue brand-name.