Victor:
from semibiznews.com
I think that VIA scares the hell out of Intel not AMD. VIA just fired a shot across Intel's bow on this one. They plan to rename Cyrix to a Chinese name. They must be feeling their "nationlistic oats". Via see potential for Asian CPU sales as great. I don't see Intel or RMBS technology in their plans.
john
Via Technologies plans to spin off CPU business
By Macabe Keliher
Electronic Buyers' News
(03/20/00, 06:50:30 PM EDT)
TAIPEI, Taiwan -- Chip designer Via Technologies Inc. here said today that it plans to spin off its CPU business into a separate company in the second quarter of this year.
"We already have CPU products on the market, and business is suitable to create a separate company to deal exclusively with CPUs," said We-chi Chen, president and chief executive of Via.
Via will own the new company and invest between $100 million and $300 million in the venture. Chen said that he considered acquiring a CPU company, but instead decided to spin off the business. "At a later date we may invite partners to invest or to undertake some sort of cooperation agreement, but now it will be solely Via-owned," Chen said.
The CPU spin-off is still without a name. Chen said that Via will choose a Chinese name for the new company. Via will not change the CPU company's product line this year, but intends to introduce new products next year, Chen said.
Traditionally a chip-set designer, Via has recently embarked into CPU design with acquisition of Cyrix Corp., which Chen estimates will account for about 10% of the company's revenue this year. Chen said Via should meet conservative gross revenue estimates of $650 million in calendar 2000. Last year, the company grossed about $390 million.
"[CPU] market potential in Asia is very high. Growth over the next two to three years looks strong. We look to become Asia's largest IC-design house," Chen said.
The core of its CPU sales will go to mainland China, a market that Via is still breaking into. Chen said that next year he hopes to take 30% of the CPU market in China and 50% of the chip-set market.
This year, China will consume nearly 7 million computer chips. Chen said Via could invest as much as $163 million in opening the China market. Nearly 2,000 employees make up Via's Chinese marketing force, which it plans to expand this year.
In addition to expanding its CPU business, Via will enter the Internet-appliance chip market, and hopes to have products out within one to two years. Chen said before the end of the year, it will announce its strategic partners. |
