Intel may exit entry-level chipset market

Intel plans to phase out its 865 and 915PL/GL chipsets in the fourth quarter and exit the entry-level chipset market, sources with motherboard makers revealed. Intel has only told some first-tier mobo makers and OEM clients about the decision, and the company is not expected to make a public announcement, the sources said. Intel declined to comment.

In the short term, the move is expected to dampen the entry-level and mid-range motherboard market, and may benefit competitors such as Silicon Integrated Systems (SiS), VIA Technologies, ULi Electronics and ATI Technologies, the sources said.

However, whether Intel’s competitors can really increase their shipments of low-cost chipsets will hinge on their ability to secure production capacity from foundries, whose capacities are currently running tight, the sources added.

SiS, a chief supplier of entry-level chipsets for the Intel platform, has secured a promise from United Microelectronics Corporation (UMC) for more capacity, but SiS still expects its 661 chipset to be in short supply through the end of the year, the sources said.

VIA’s chipsets chiefly support the Advanced Mirco Devices (AMD) platform although the maker has stepped up its efforts to develop products for the Intel platform.

Source: DigiTimes

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