Taiwan PC and chipset makers expect high prices for Intel Viiv PCs, slated for launch next year, will initially make it difficult for the platform to find traction in the market, limiting the threat to Taiwan chipset vendors, according to Taiwan-based PC makers.

The makers noted that Intel will face some issues trying to get the market to adopt the Viiv platform, including higher quotes for using Microsoft Window Media Center OS and insufficient software support for digital audio and video capabilities. The selling prices of Viiv-based system will be US$1,000-1,500, whereas mainstream PCs cost US$299-499, the makers said.

Although chipset makers including Silicon Integrated Systems (SiS) and VIA Technologies were expected to come under threat from Intel’s “platformization” strategy, market analysts suggest that because Intel is focusing on the higher end of the market with its digital home platform, the negative effects on Taiwan chipset makers, which mainly focus on the entry-level segment, should be limited.

In addition, with Intel phasing out its 915PL/GL series chipsets, the current entry-level chipset shortage should not ease until the middle of 2007, which should continue benefiting Taiwan-based chipset and graphics card makers, according to the motherboard makers.

By: DocMemory
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