S3 announces 10 year cross licensing deal with Intel
BW0026 DEC 17,1998 5:00 PACIFIC 08:00 EASTERN
( BW)(S3)(SIII) S3 Announces 10-Year Cross Licensing Agreement With Intel;
Intel to Purchase Warrants for S3 Shares; S3 to be an Intel AGP 4X Validation
Partner
Business Editors/Technology Writers
SANTA CLARA, Calif.--(BUSINESS WIRE)--Dec. 17, 1998--S3 Inc. (Nasdaq:SIII) today
announced a long-term agreement with Intel Corp. (Nasdaq:INTC) which includes a 10-year
cross-license agreement for all S3 and Intel patents for development of certain semiconductor products, a
bus license for current and future Intel general purpose processors, and the selection of S3 as an Intel
AGP 4X validation partner.
S3 also announced that Intel is to purchase warrants to buy S3 shares under undisclosed terms.
"Through this multi-faceted agreement with Intel and its 1999 product roadmap, S3 intends to
re-establish its position as the number one supplier to high-volume OEMs and add-in-card manufacturers,"
said Ken Potashner, President and CEO of S3.
"The company plans to uniquely support these customers through its IP strength, strong product line-up,
and high-volume manufacturing capabilities. S3 also plans to pursue various levels of integration in
response to customer demands for increased functionality, added differentiators and high-volume cost
competitiveness."
While specific terms of the agreement are not being disclosed, Potashner added, "Our agreement with
Intel is another milestone in S3's long-term strategy to regain its leadership position in graphics and
penetrate other new markets through integration. By bringing more value to our customers in terms of
technology, support and industry relationships, we believe we can capture a significant amount of OEM
and AIC design wins in 1999 and beyond."
S3's Plan for Integration
S3 is currently the world's second largest supplier of single-chip 2D, 3D, and video accelerators for the
desktop and mobile markets. Through this newly acquired technology base as well as its industry-first .18
micron process capability announced last week, S3 plans to broaden its product offering to incorporate
additional functionality onto its accelerator chips.
The types of technologies that will be integrated will be driven by OEM and AIC requirements and are
scheduled to be unveiled over the next 12 months.
In addition to the graphics space, S3 also intends to pursue new markets that represent substantial
growth opportunities for the company. Targeted products in these new markets may include set-top
boxes, WinCE machines, consumer appliances, industrial point-of-sale systems, and automotive GPS
systems, among others.
Intel Selects S3 as an AGP 4X Validation Partner
As an Intel AGP 4X validation partner, S3 is well positioned to be first-to-market with AGP
4X-compliant products in an industry that is rapidly transitioning from AGP 2X to AGP 4X. Based on data
from Mercury Research, a leading research firm located in Scottsdale, Ariz., AGP 4X is expected to
capture more than 40 percent of the entire PC market in the second half of 1999.
According to Dean McCarron, principal with Mercury Research, "We see the PC market rapidly
transitioning to AGP 4X in the second half of 1999. Similar to the recent transition from PCI to AGP 2X,
we expect key system manufacturers to migrate to AGP 4X early as a differentiator, leading the industry
and driving volume AGP 4X shipments." |
