Via introduces unlicensed Pentium 4 chipset
By Faith Hung, EBN
Aug 15, 2001 (7:40 AM)
URL: ebnews.com
TAIPEI, Taiwan -- Undaunted by threats of legal action from Intel Corp., Via Technologies Inc. has launched its Pentium 4 processor-compatible PC chipset with the claim that it will own half of the P4 chipset market by the end of the year.
Via told reporters today that it has begun full production of P4 double-data-rate (DDR) SRAM-enabled chipsets, despite the fact that Via has yet to win a license granting it access to Intel's processor bus.
“We're ready to ship the P4x266 chipsets in large quantities,” said Ted Lee, worldwide sales and marketing vice president for Via. “We don't think we've infringed the patents of Intel.” The Taipei company has repeatedly said that it will avoid legal trouble with Intel due to Via's acquisition of graphics chipmaker S3 Inc., which had a cross-licensing agreement with Intel before it became part of Via.
The move by Via comes days after an Intel executive warned in Shanghai that unauthorized chipset manufacturers would face lawsuits. Via might be able to ignore the warning, but motherboard companies apparently aren't.
Asustek Computer, Gigabyte Technology, and Microstar International -- Taiwan's top-tier motherboard makers -- said the will not ship Via's P4 x 266 chipsets even though they already have designed in the chipsets. “Before the legal issue is worked out, we won't ship products with the chipsets,” said Samuel Liu, an assistant vice president at Microstar, Taipei.
Via, which said last week that it has delivered some DDR chipsets to about 10 smaller motherboard makers, declined to name any of the companies. “It's not the right time to identify our motherboard partners due to the pressure from Intel,” said William Lee, a Via spokesman. “If we do, our partners would be less inclined to use Via's products.”
Some analysts said Via's mass production of the P4 chipsets is necessary for its future growth. “If they didn't do that, they would have no chance to take advantage of the growth of the P4 CPU market,” said Eric Wang, head of global semiconductor research with ABN AMRO in Taipei. “Via is putting itself in a brutal battle field.”
Via's strategy is to price its product 25% below Intel's 845 SDRAM-compatible chipsets, which are expected to be released in a few weeks. Intel won't introduce a DDR version of the chipset until the first quarter of 2002, analysts said.
Last year, Via reached an undisclosed, out-of-court settlement over its unlicensed use of Intel's Pentium III processor bus after Via's PC133 platform helped the company increase its market share at Intel's expense.
Also joining the battle are Silicon Integrated Systems and Acer Labs, both of which have been granted a license by Intel.
SiS, Hsinchu, Taiwan, has decided to start the full production of its 645 DDR333 chipsets in September, two months ahead of schedule. “This is a product that we have high hopes for,” said Ellie Yin, an international marketing manager. “Our R&D people are working day and night and we have to ship the product as soon as possible.”
SiS, which has sampled the chipset, will ship the products to Asustek, Gigabyte Microstar and second-tier makers, Yin said.
Acer Labs, a unit of Taiwan's Acer Group, is set to ship its P4 chipsets in the fourth quarter. |
