STM pulls the plug on Kyro

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GENEVA--(BUSINESS WIRE)--Feb. 8, 2002-STMicroelectronics NYSE:STM) has announced that it is withdrawing from the PC Graphics Accelerator IC market and is currently seeking a buyer for the related assets and activities of its PC Graphics business, which accounted for approximately $15 million of STs $6.36 billion revenues in 2001.
The potential sale is in line with STs objective of focusing its R&D efforts on market areas that are strategically important to the Company, notably: communications, automotive, computer peripherals, smart cards and digital consumer. In the digital consumer market, ST will continue to emphasize set-top box, DVD and digital TV applications, in which the Company holds worldwide leadership positions.
 
Hotdamn!

...And STMicroelectronics were the one to develop the PowerVR Series4 and Series5 with Imagination Technologies! :eek:

Imagination Technologies still have PowerVR Technologies (and hence the IP) but it'll take time to find a new partner who can develop the next gen. Is Kyro III affected by all this?

What a blow. Not good, not good at all... :cry:

Regards LeStoffer
 
Something to note there - they are selling the entire graphics division. STM have already purchased licenses to PowerVR Series 4 & 5 so those would be going to the buyer of the graphics division most likely. If a suitable buyer is found then are they just going to waste those licenses? Especially seeing as STM/PowerVR are pretty far down the path of KYROIII. The license deals that IMG negociated may have even had clauses in there that stipulates the products must come out for desktop.
 
would anybody knowledgeable bother to comment what exactly was STM's part in the PVR development and/or production?
 
Technologies Group PLC
8 February 2002


IMAGINATION TECHNOLOGIES GROUP PLC
('Imagination')

Re: Announcement by STMicroelectronics ('ST')


Imagination's partnership with STMicroelectronics is focussed upon using Imagination's technology in a number of different markets. Imagination reports that in relation to the PC market, ST has today announced that it is currently
seeking a buyer for its PC Graphics Business which utilises Imagination's PowerVR technology and as a result will be withdrawing from this market area.


Imagination is aware of discussions taking place with interested parties and has been involved in supporting ST with these activities. In addition, a number of interested PC chip companies have approached Imagination regarding access to future PowerVR PC technologies.


Imagination and ST will continue their partnership activities to utilise Imagination's technology in the set-top box market and expect to extend relationship to the mobile device market in due course.


Imagination will update shareholders with any further developments.
Click to expand...

Rather than being negative... how about thinking positive and figure out who would be interested in future PowerVR Technology? Who out there would want to step in and take over where ST has left...

No other comments from me, the above quote is from the PR IMG has released on this issue.
 
On 2002-02-08 10:30, DaveBaumann wrote:
Something to note there - they are selling the entire graphics division. STM have already purchased licenses to PowerVR Series 4 & 5 so those would be going to the buyer of the graphics division most likely. If a suitable buyer is found then are they just going to waste those licenses? Especially seeing as STM/PowerVR are pretty far down the path of KYROIII.
Click to expand...

Of course. It's just that the problem is with the possible delay and generel uncertainly that will now prevail over the Kyro-family. Hercules and other just cant sit still hoping for the best outcome. They have business plans and will need a new partner - fast.

Good OEM contracts are crucial the make money in this business. And right now I fear that OEMs are jumping ship... :cry:

Regards, LeStoffer
 
would anybody knowledgeable bother to comment what exactly was STM's part in the PVR development and/or production?
Click to expand...

PowerVR design the 3D capabilities and license that to STM; STM to all/most of the chip layout and repining; in the case of KYRO they also fabbed the chip, however they used TSMC to fab KYROII. STM also then sell the chips to board vendors.

In essence STM were like NVIDIA (and now ATI) expect for the fact they don’t research and develop the 3D technology, just do the chip work.
 
If IMG was considering taking in more of the development process (or splitting PowerVR off to a company which is willing to do it all) Id be positive. Without inside knowledge its hard to point out the causes of the lack of execution ... maybe IMG just keeps picking poor partners, but I put my money on the fragmented development.

Things seemed to turn around with the Kyro, but each successive step indicated it was just the exception to proove the rule.

As long as IMG seems content to just replace their old partner with a new one and keep doing buessinuess as usual I see no reason for optimisim, even if they find a new partner soon. Big problems loom on the horizon, piddling around in the low end is a poor strategy ... if PowerVR has to follow where others lead it will be led where it cant follow. Time is running out.
 
Kristof, as a veteran stockholder of IMG and keen follower of the company since the Avesco days, I have learnt to take all their PR releases with a pinch of salt.

1.When they say they have been approached by a number of companies, it means just that. Nobody has actually stepped up and licensed the designs.

2. When they say they will continue their partnership in the STB market - what partnership? One STM reference STB design was demoed at an electronics fair at Earls Court about 18 months ago, and we have heard nothing since. Recent "home gateway" STB releases from the likes of Pace have had all chosen graphics solutions other than IMG's (Fujitsu parts IIRC)

3. They expect to extend the relationship to the mobile market - "expect" doesn't cut any ice with me or the markets. The MBX cores have been demoed to ARM's partners - current licenses sold - zero.

Think positive? I can't see anything to be positive about, nor anyone buying ST's graphics business for big euros when it has only sold 1 million boards during the two year partnership.
 

Rather than being negative... how about thinking positive and figure out who would be interested in future PowerVR Technology? Who out there would want to step in and take over where ST has left...
Click to expand...


nVIDIA? :smile:
Of course I'm joking here..

ciao,
Marco
 
would be quite funny if NV buys them ;)

any ideas if ATI/Matrox/who ever is interested buying them?
 
Intel had some rumored TBR chip due out next month for initial use as a new integrated chip with 3D.

Some hints at:
http://www.infosatellite.com/news/2001/11/a221101i845g.html

Maybe Intel might find some value in the IP for sale and help push their integrated video solutions a bit ahead.

A design like the in-plan KyroIII, tweaked and tuned and designed for integrated use on the future P4 systems would definately be interesting.
 
Could Via be another possibility?

This was from a recent article from Digitimes

“VIA Technologies announced on January 30 the kick-off of its “Canaan Project†to deepen the diversification of its operations. According to the project, VIA will restructure its business into five units – chipsets, processors, graphics chips, optical drives and networking equipment. Its VIA Platform Solutions Division (VPSD) will remain under the chipsets division. Company CEO and president Chen Wen-chi said that VIA will try to position itself as a “platform†provider, instead of just being a core logic chipset designer.â€

When 3dfx went under most of the employee’s I knew at the time thought that, right up until the very last minute, they were going to be purchased by Via, so they were in negotiations then. 3dfx was a much bigger fish than STM’s graphics division is so it indicates that even then they had signals to enter the 3D add-in market, and as the post says above it looks like they are going to now. Could the STM deal provide them with the perfect opportunity?

Its been said to me before that when Via purchased S3 they didn’t realise that S3 had no projects underway, so they didn’t have any future tech at the time, just Savage 2000 and all the previous stuff; with STM, however, Via has the licenses for two new chipsets (one that must be quite far down the development path) and a partner who is involved with designing new technologies.
 
There is only a few companies that could afford to buy them or even be interested:

Sony
Intel
Amd
Nvdia
ATI

I put Sony up there as it would be in their best interest for future support/development of the PS2 chips.
 
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