Feeds

Chipset makers 'to raise prices' in Q3

But higher oil prices could hit them hard in Q4

Boost IT visibility and business value

Chipset prices look set to rise during the quarter, Taiwanese industry sources warn, with an inevitable knock-on effect on motherboard prices.

Demand is outstripping supply, it seems, as Intel's low-end chipset production is cut, forcing buyers to turn to rival suppliers SiS, VIA, ATI and Nvidia.

That, said the sources - cited by DigiTimes - has already persuaded SiS to put up chipset prices by 10-15 per cent.

The other three companies are expected to follow suit, raising chipset prices by around ten per cent, the sources alleged.

The upshot will be improved Q3 financial results. Said sources reckon SiS and VIA will each ship around 7.8m chipsets in the third quarter, up 30 per cent on Q2's 6m. ATI's shipments are expected to jump 150 per cent, from around 2m in Q2 to 5m in Q3, largely on the back of its RC410 integrated chipset, which targets Intel processors. Since ATI bundles its North Bridge parts with ULi South Bridge chips, the latter company is expected to see Q3 shipments rise handsomely too.

Beyond Q3, the picture is more murky, thanks to the effects of Hurricane Katrina. This week, the US Semiconductor Industry Association (SIA) warned that rising oil prices could hit the chip industry hard.

The already-inflating crude price has risen on the back of the disaster's impact on US oil and gasoline production. That's already pushing up gas prices in the US, which is expected to have a impact elsewhere. The likely result is weaker consumer spending in the coming months. Chip makers' customers may well find themselves over-supplied in Q4 and Q2 2006, or demanding lower prices in order to price their own products to levels consumers are willing to meet. ®

Build a business case: developing custom apps

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Banking apps: Handy, can grab all your money... and RIDDLED with coding flaws
Yep, that one place you'd hoped you wouldn't find 'em
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
Netflix swallows yet another bitter pill, inks peering deal with TWC
Net neutrality crusader once again pays up for priority access
Judge nixes HP deal for director amnesty after $8.8bn Autonomy snafu
Lawyers will have to earn their keep the hard way, says court
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Backing up distributed data
Eliminating the redundant use of bandwidth and storage capacity and application consolidation in the modern data center.
The essential guide to IT transformation
ServiceNow discusses three IT transformations that can help CIOs automate IT services to transform IT and the enterprise
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.