PCs are still here, but the post-PC era is nigh and VIA Technologies Inc plans to be ready for it.
VIA, the world's second largest chipset maker after Intel Corp, yesterday became a founding member of the Taiwan 1394 Association. Other members include Procomp Informatics Ltd, MGI in Asia, Texas Instruments and the Taipei Computer Association.
It aims to promote the opportunities created by the use and production by Taiwan manufacturers of "IEEE 1394" -- The IEEE 1394 high-speed serial bus, also known as "Firewall," uses small cables and simple connectors to enable low-cost, high-bandwidth, real-time data interfacing between computers, peripherals and consumer electronics products such as camcorders, VCRs, printers, PCs, TVs, and digital cameras.
VIA has already developed a chip, the VIA Fire II VT6306, that integrates the IEEE 1394 with single chip PC peripherals such as printers and video cameras.
It has also been working with Microsoft for more than a year to incorporate VIA's 1394 products with Microsoft's operating systems.
The association it joined yesterday provides it with peripheral partners such as the motherboard and device manufacturers that it will need to ensure compatibility between different peripherals.
Meanwhile, VIA has also developed its own computer processor units. "They're not as good as Intel or AMD, so they target the lower-end market" such as IA products, said Abraham Leu, head of Asian technology at Prudential-Bache.
Being ready for the growth of IA and communications products in the post-PC era is a big part of VIA's strategy, said Shane Dennison, marketing manager at VIA. "We're looking to really strengthen all our communications technology with the 1394," he said.
The high-speed transfer rate and flexibility of the 1394 will allow for faster interfacing between input and output devices, which is more important in an IA than a normal PC, said Leu.
And while the universal serial bus is currently the main interface connecting a system's hardware, software and peripherals, people are starting to move away from PCs to IAs, said Leu. As they do, he said, VIA will be ready and waiting.
"They have the CPU ready; they have the chipset ready; and they have the [1394] specification ready to the industry standard," said Leu, who expects VIA to become a leader in the IA market.
It's a good strategy, analysts say, though not without risks. Much depends on the speed with which the IA market grows and how it takes shape. VIA already has a high market share in chipsets, so diversification is important to retain high revenue growth, said Leu. "If we need to wait three years for IAs to become popular, then VIA will be in trouble," he said.
Also, given the slow adoption of the universal serial bus when it first came onto the market, analysts query the speed with which the 1394 will come into use. "People were talking about the USB at least five years ago," said a technology analyst at ABM AMRO. "Only now are you starting to see USB peripherals," the analyst said.
So, even if the 1394 possesses a faster speed transfer rate than the original USB, the transition to the 1394 may not be that fast, given the experience with the USB. It may be further slowed by USB's recent upgrade to a version with a speed transfer rate comparable to the 1394.
While the 1394 could be adopted more quickly for consumer application devices, the analyst from ABN AMRO said, that's unlikely to happen soon.
RSS