VIA Bares New Version of Legally Disputed Chipset
(By the way, did anyone else know that VIA's CEO, Win Chi Chen, is a former Intel executive?)
By Tim McDonald, www.NewsFactor.com
dailynews.yahoo.com
VIA Technologies unveiled a faster chipset for Pentium 4 processors Tuesday -- an advanced version of the same chipset that rival Intel (Nasdaq: INTC - news) claims violates its patents.
The two companies have a lengthy history of legal entanglements involving chipsets -- a vital part of the PC that moves data from the processor to other parts of the computer -- as well as processors.
VIA's Pentium 4 chipset is attractive to motherboard makers because it is cheaper than Intel's chipsets and is compatible with a low-cost, high-speed memory technology called double-data rate (DDR) memory.
Intel's Pentium 4 chipset, in contrast, uses either standard SDRAM memory or the more expensive Rambus DRAM.
Also on Tuesday, Taiwan-based VIA said it had sealed international distribution deals involving the legally disputed chipset series.
'Pushes Chipset Envelope'
VIA said its new Apollo P4X266A chipset improves access speeds for memory and can be combined with other components, making it even faster.
The company said the chipset has the "world's fastest" DDR memory controller. The chipset features a 400 MHz front side bus, the component that moves information to other parts of the processor, and supports a full range of Pentium 4 processors up to and beyond 2 GHz.
"The VIA Apollo P4X266A pushes the performance envelope for Intel Pentium 4 processor based systems," said VIA spokesman Richard Brown.
It is priced at US$25 in quantity.
Suits and Countersuits
Intel, the world's largest chip and chipset maker, filed a federal suit in September, alleging VIA was making Pentium 4 chipsets without a license.
Santa Clara, California-based Intel claims the P4X266 chipset series violates its patents and has indicated it will sue companies, including motherboard makers, that use VIA chipsets in their products.
VIA countersued, claiming Intel's Pentium 4 chip infringes on technology VIA uses in its own C3 chip. Intel then sued again, saying the C3 processor violated U.S. patents. Though Intel had made that claim in other countries, it was the first time the company took legal action on the claim in the U.S.
Intel asked for unspecified damages and an injunction barring VIA from selling the processor.
Intel has also filed suits in Hong Kong, England and Germany against VIA and its business partners. It filed similar suits against VIA in 1999 after VIA came out with chipsets for the Pentium 3. Those suits were settled in 2000.
Protecting Motherboard Makers
Last October, VIA and Advanced Micro Devices (NYSE: AMD - news) brought an action before the European Commission (news - web sites) alleging that Intel's monopoly in the microprocessor business enabled it to engage in "abusive" marketing practices.
In October, VIA said it would start making its own motherboards to incorporate VIA's chipsets for Pentium 4 chips. Analysts have said many of the major motherboard makers have refused to use VIA chipsets, fearing legal action from Intel.
VIA's distribution deals could mean that the disputed chipsets will end up in unbranded motherboards in an effort to protect motherboard makers from legal action.
CEO Former Intel Exec
With its budget-priced processors, VIA is not much of a threat to Intel, but the Asian company remains the second-largest chipset maker behind Intel. Its cost-effective C3 processors for value PCs helped it to annual revenue of nearly $1 billion in 2000.
The company, with branch offices in the U.S., China and Europe, is trying to enter the embedded device market, which includes products like digital video recorders, set-top boxes and communications chips.
VIA's CEO, Win Chi Chen, is a former Intel executive.
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