VIA Technologies Inc kicked off its VIA Technology Forum 2000 yesterday by announcing the launch of two new chipsets enabling the adoption of double data rate DRAM for high-performance servers, workstations, and PC applications on both Intel and AMD processor based systems.
Double data rate dynamic random access memory utilizes existing DRAM infrastructure and technology to double the data rate of the 133MHz memory platform, known as PC133, by sending two units of data per clock cycle, rather than PC133's one unit. The result: twice the amount of information in the same amount of time.
"DDR provides the most appropriate memory solution for solving the system performance bottleneck while leveraging the cost benefits of the existing SDRAM infrastructure," said Wen Chi-chen, president and CEO of VIA, in a statement yesterday. VIA is the world's second largest computer chipset supplier after Intel Corp.
The launch of the VIA Apollo Pro266 and VIA Apollo KT266 chipsets gives VIA the advantage of being the first company in the market to offer DDR-supporting chipsets, securities analysts said. The new chipsets also further add to VIA's already diversified product-line. However, having announced it would develop DDR-supported chipsets back in April, the news had already been factored into the company's share price, analysts said. As a result, with all the good news now out of the way, the company may have difficulty sustaining a high share price, they said.
The new chipsets are expected to enter into mass production from the middle of October, said Frank Jeng, marketing manager at VIA. The main customers will be motherboard makers such as Micro-star International Co and Gigabyte Technology, he said. "We haven't received any orders yet as the chipset is going through pilot-runs," he said.
However, Micro-star has already begun making models incorporating the new chipset and will make orders from the end of October, said Iris Li, marketing specialist at Micro-star.
Micro-star selected the VIA chipset because it has a good relationship with the chipmaker, said Li. It also doesn't have much choice. "We will announce VIA products first because VIA is the first to have the DDR chipset ready," she said.
The tactic by VIA hasn't gone unnoticed by analysts. "The market has only one choice," said an analyst from a local securities company. "VIA has been very aggressive in launching this product because it's looking at DDR being the main product next year," she said.
And as the first company with the ability to mass-produce a DDR supporting chipset, VIA's product will now dominate the market, she said.
Acer Laboratories Inc had announced that it would launch DDR chipsets supporting Intel and AMD processors in the fourth quarter of the year. But it has a reputation for delaying product launches, analysts said. "The good thing with VIA is it can keep its promise," said Andrew Teng, semiconductors analyst at Taiwan International Securities Corp. "You can count on what they say."
And with DDR memory expected to dominate the market next year, VIA will be able to take full advantage of having the first chipset on the market that supports DDR, said Teng.
Meanwhile, as markets took a breather from their downward trajectory, VIA's share price fell 1.74 percent to NT$395.
The good news has already been factored into the share price, said the analyst from the local securities house.
Further, after strong earnings- per share growth this year, she expects much slower growth for the company next year due to slower growth in the chipset market.
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