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Technology Stocks : S3 (A LONGER TERM PERSPECTIVE) -- Ignore unavailable to you. Want to Upgrade?

To: stock talk who wrote (12440)	12/19/1998 6:03:00 PM
From: Doug Simpson	Read Replies (1) \| Respond to of 14577

Here's another version of the recent news Intel swaps patents with graphics outfit -- Sat, 19 Dec 1998 00:53 EST Dec. 18, 1998 (Electronic Engineering Times - CMP via COMTEX) -- Santa Clara, Calif. - Intel Corp. and graphics-controller vendor S3 Inc. last week announced a 10-year patent cross-licensing agreement, a move that clears the path for S3 to integrate core logic and graphics functions. The license is key to S3's plans for integrating a graphics controller with core logic. "Everybody knows Whitney is coming, and to be competitive, you're going to need something similar," said Dean McCarron, a principal of the research firm Mercury Research (Scottsdale, Ariz.), referring to Intel's forthcoming chip set, incorporating graphics and multimedia functions, for Celeron-based machines. S3 will be preparing a graphics chip integrating core-logic functions, but Rick Bergman, S3's director of marketing, declined to reveal other details. But in developing such a chip, access to Intel's P6-bus patents was a chief concern. The deal with Intel will allow S3 to manufacture its integrated chip set outside of Intel's circle of protected foundries, which in turn should help keep costs low, McCarron said. Intel officials characterize the agreement as a safeguard for overlapping product goals. "Both companies had patent portfolios that the other company was interested in," Intel spokesman Chuck Mulloy said. The license is the latest in a series given out by Intel this month. Core-logic vendor Via Technologies Inc. was granted a license, making its wares legitimate in Intel's eyes, and Sandia National Laboratories recently was granted a royalty-free Pentium license. -0- Copyright 1998 CMP Media Inc.