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Technology Stocks : Rambus (RMBS) - Eagle or Penguin
RMBS 95.23-1.2%3:05 PM EST

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To: Rich1 who wrote (79480)10/31/2001 12:25:55 PM
From: Don Green  Read Replies (1) of 93625
 
Silicon Integrated to Make Chip Backing Rambus, Web site Says
By Iain Pocock

Taipei, Oct. 31 (Bloomberg) -- Silicon Integrated Systems Co., which makes chipsets for Intel Corp.'s Pentium 4 processor, will make a chip for the biggest semiconductor maker's processor that supports memory produced by Rambus Inc., ZDNet News reported, citing a representative at Silicon Integrated.

Silicon Integrated plans to ``support Rambus,'' the Web site said, citing the representative. Rambus, which until September was the sole designer of memory chips used with Intel's Pentium 4, has contacted Silicon Integrated, said Ellie Yin, international marketing manager at Taiwan's second-largest chipset maker.

A Silicon Integrated-made chipset supporting Rambus memory would cut the cost of computers using it and serve as a new challenge to Intel and Silicon Integrated rival Via Technologies Inc. by boosting sales of a memory chip that Via doesn't support, analysts said. Intel is the only supplier of a chipset supporting Rambus memory.

``If Silicon Integrated is going to make chipsets for Rambus, that would be really good news for it [Rambus],'' said George Wu, an analyst at Taiyu Securities Corp. ``There would be a chance for it to get into mid-stream personal computers and servers.''

Chipsets control the flow of data between the processor and other parts of a computer.

In September, Intel released a chipset supporting cheaper memory chips than the Rambus chips. It also licensed Silicon Integrated and Taiwan-based Acer Laboratories Inc. to make the new chipset, but not Via, whom it sued last month for allegedly infringing on its processor patents.

``Intel's trying to work with Silicon Integrated to fight Via in the chipset market,'' Wu said. ``If they start a new product, it could have a big impact on Via's market share.''

Via said third-quarter profit plunged almost two-thirds to NT$882 million ($25.6 million) as slowing demand and competition from Intel reduced sales and prices. Via's shares have fallen 21 percent since Intel accused it of patent infringement on Sept. 7. Silicon Integrated's shares have risen 28 percent during the same period.

(http://www.zdnet.com)
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