Silicon Integrated Systems will focus on the production of core-logic chipsets, targeting sub-US$1,000 mainstream and value-PC systems in 2005, said company president and CEO Daniel Chen.

In addition, SiS also plans to venture into the development of related chips for PC TVs and digital-home appliances, Chen added.

As part of its efforts to make the company profitable in 2005, SiS had spun off its business units for USB and handset chips and cut its staff from 2,000 at the end of 2003 to 670 at the end of last year, Chen noted.

The restructuring and other cost-down measures will help the company sustain a gross margin of 26-27% in the first quarter of this year, the same level as it managed in the fourth quarter of last year, Chen said.

Profitability is expected to gain a boost in the second half, when the company begins volume shipments of chips for Xbox2 game consoles, Chen said.

According to Chen, SiS shipped 21 million core-logic chipsets in 2004, with about 67% of the chips supporting the Pentium 4 platform and the remaining 33% supporting the AMD platform.

However, shipments of K8-compatible chipsets totaled 3.1 million units in the fourth quarter last year, boosting the AMD- compatible chipsets to 50% of its total shipments of core-logic chipsets, Chen noted.

By: DocMemory
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