The US-based Oracle Corp announced yesterday it had chosen VIA Technologies Inc (威盛電子) to supply processors for its US$199.99 (NT$6,500) low-end computer, a project the com-pany's CEO Larry Ellison has tried to move forward for years.
The Semibiznews.com Web site reported that New Internet Computer Co (NIC), set up to manufacture Ellison's US$199.99 computer, has decided to design the low-cost PC around VIA's Cyrix MI PR266 processor.
"[The VIA PR266 microprocessor] is an older chip, but a US$200 computer does not need a high-speed CPU," said Henry Wang (
Analysts called the deal coup for VIA, saying NIC's decision to use VIA microprocessors is a clear design win for the company's chips. The deal is further boosted by the close relationship between NIC and Internet software giant Oracle Corp.
Ellison set up NIC to work on developing an easy-to-use computer costing less than US$200. Low-end computers are built to deliver Internet browsing, e-mail and mainstream computing at lower prices.
VIA, which made great strides in core logic chipsets last year, is focusing its microprocessors on low-end PCs this year. The company has already put out a 700 megahertz chip, the Cyrix III, and plans to unveil a faster chip -- the 750MHz "Samuel II" -- by the end of March, followed quickly by an 850MHz version under the same name.
Each step up in computing speed and power, however, is made with price in mind. VIA badly wants to capture the market for low-end computer systems, and it believes it can capture 5 percent to 7 percent of the world market for semiconductors by following this strategy.
The NIC deal proves VIA's plan is paying off.
Meanwhile, VIA also plans to market a budget-priced PC.
VIA has unveiled its "Information PC "with a price tag of just under US$500 (NT$16,350) per unit at the CeBIT 2001 computer show in Hannover, Germany.
The CeBIT show runs from March 22 through March 28. The company hopes its designs will inspire other companies attending the show to develop their own value-PCs, using VIA's Cyrix III family of microprocessors.
The problem with lower-cost PCs, however, is their lack of acceptance in the market. Oracle tried to launch a low-end PC years ago, and the venture flopped. This time, the low-cost PC plan faces a world market glut of computer hardware, with prices on high-end products falling so fast that a low-end model could still be priced out of the market.
Over 90 percent of the world's population living without a PC and unable to tap the Internet. VIA has been marketing aggressively in India and China, arguably the best spots to sell low-end computers. China's largest computer maker, Legend (
In February, VIA's sales stood at NT$3.25 billion (US$100 million), growing 125.13 percent from a year earlier. The company's revenues reached NT$6,338 billion, up 107.30 percent from last year.
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