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Chipset suppliers see revenues drop in June


Wednesday, July 5, 2006

VIA Technologies and Silicon Integrated System (SiS) saw revenues decline in June sequentially as the impact of the low season continued to be felt and their shares in the chipset market dropped.

VIA posted NT$1.49 billion (US$46 million) in revenues for June, down 8.38% from NT$1.62 billion in May, while SiS saw its June revenues decline 23% to NT$548 million from NT$712 million in May.

SiS said demand was weak during the first half because of seasonal effects, but the company expects demand in the second half will be boosted by the upcoming price war between Intel and AMD. SiS also predicts significant rises in PC shipments in 2007.

With plans to start 80nm production in 2007, SiS expects decreases in production costs and increases in profits.

With its market being squeezed by Intel, ATI and Nvidia, VIA has diversified its product range into embedded chipsets. It has already managed to gain access to some niche markets for the embedded chipsets.

Market sources expect that VIA's revenues for the third quarter should only decline slightly compared to the second quarter.

By: DocMemory
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