ATI Technologies, Nvidia and VIA Technologies may raise chipset prices by approximately 10% as demand is outpacing supply, according to sources in the Taiwan chipset industry. The increase will follow a 10-15% price-hike earlier planned by Silicon Integrated Systems (SiS).

With the third quarter being the traditional peak season, ATI, Nvidia and VIA are gaining additional entry-level chipset orders for the AMD and Intel platforms, due to chipset shortages at Intel and SiS, the sources indicated.

SiS and VIA are expected to see 30% shipment growth in the third quarter, up from about six million units each in the second quarter, sources at motherboard makers indicated. ATI and Nvidia had shipments of more than two million units in the second quarter, the makers noted.

ATI may hit shipments of five million units in the third quarter, buoyed by rising demand for its integrated RC410 chipset for the Intel platform, the makers estimated. ULi Electronics is also expected to see positive results for the third quarter, as it has been benefited from its collaboration with ATI by bundling its southbridge chips with ATI's northbridge solutions, according to the makers.

SiS rebounded from a NT$1.4 billion pre-tax loss in the first half of 2004 to pre-tax profits of NT$436 million in the first half of this year, VIA’s pre-tax loss narrowed from NT$1.7 billion to NT$478 million.

By: DocMemory
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