VIA eyeing ST’s graphics chip division?
Charles Chou and Emma Wang, Taipei; Christy Lee, DigiTimes.com [Wednesday 6 March 2002]
In response to a recent rumor that it is planning to acquire the graphics chip division of STMicroelectronics (ST), chipset designer VIA Technologies on March 5 only confirmed that it has indeed been in contact with some international graphics chip companies, but refused to comment further on the progress of the plan, and more importantly, the identity of the candidates.
VIA said that its graphics chip acquisition, S3, may have leading advantages in the notebook sector, but to strengthen its desktop graphics chip product lines it has started reaching out to some graphics chip designers for possible cooperation. The company further noted that acquisition is not necessarily the only way to obtain related technology.
Industry sources said that they would be conservative about the actual value of the purchase if ST’s division is truly a candidate VIA is considering. They indicated that the market response to ST’s Kyro II line, launched in 2001, was rather weak.
ST transferred its graphics chip technology from Nvidia, and had manufactured graphics chips for Nvidia, four to five years ago. The production cooperation only lasted for just over a year. As for the driver program for its graphics chips, ST has adopted the technology of UK-based VideoLogic Systems. Given the moderate performance of VideoLogic’s driver program, compared to those of Nvidia and ATI Technologies, it is believed that VIA may not purchase the driver program segment if an acquisition were to be proposed.
VIA obtained S3’s Savage graphics core technology by acquiring the company in 2000. With S3’s expertise in notebook graphics chips and graphics-incorporated integrated chipsets, VIA successfully entered the notebook sector. At present, the Savage core technology has been updated from the Savage 4 to Savage 8. VIA’s chipsets, such as the P4M266, PN266T and KN266, are all based on the Savage 8 graphics core.
Currently, VIA and S3 are designing a new-generation graphics core titled Zoetrope, set for launch in mid-2002.