Feeds

Intel to boost chipset production, bank claims

Bad news for ATI and co?

High performance access to file storage

Intel is set to stop shipping motherboards based on third-party chipsets, or at the very least significantly reduce its dependency on other companies' products, investment bank Friedman Billings, Ramsey Group (FBRG) has claimed.

According to EETimes, the institution has downgraded ATI as a result. The graphics chips maker has been one of the key beneficiaries of Intel's third-party chipset purchasing programme. FBRG reduced ATI to "market perform" from "outperform".

In a report to its clients, FBRG suggests Intel is shifting production of products not related to PCs out to third-party producers. That's freeing up production capacity for its own chipsets.

In August 2005, Intel responded to claims that it was pulling out of the entry-level chipset market by stating it was focusing its available production capacity on higher-margin parts. Soon after, Intel's motherboard division began shipping its first product based on a third-party chipset, in this case an ATI part.

With fewer low-end Intel chipsets in circulation, other motherboard vendors turned to ATI, SIS, VIA, Nvidia and others. The result was increased sales through to the end of 2005 and into 2006. Intel's sales have dipped, of course, but for that period it still garnered far greater revenues than its rivals.

The problem now, FBRG claims, is that some mobo vendors are increasingly replacing chipsets for Intel CPUs with parts for AMD chips, and Intel is allegedly increasing production of its own chipsets in a bid to counter the trend. Don't forget, it's also gearing up to ship its 965-series 'Broadwater' chipsets targeting its next-generation CPU architecture.

The upshot for ATI is a potential dip in H2 chipset sales, FBRG said, with a slowing PC market only making matters worse. ®

High performance access to file storage

More from The Register

next story
Feast your PUNY eyes on highest resolution phone display EVER
Too much pixel dust for your strained eyeballs to handle
Samsung Galaxy S5 fingerprint scanner hacked in just 4 DAYS
Sammy's newbie cooked slower than iPhone, also costs more to build
Microsoft lobs pre-release Windows Phone 8.1 at devs who dare
App makers can load it before anyone else, but if they do they're stuck with it
Report: Apple seeking to raise iPhone 6 price by a HUNDRED BUCKS
'Well, that 5c experiment didn't go so well – let's try the other direction'
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Nvidia gamers hit trifecta with driver, optimizer, and mobile upgrades
Li'l Shield moves up to Android 4.4.2 KitKat, GameStream comes to notebooks
AMD unveils Godzilla's graphics card – 'the world's fastest, period'
The Radeon R9 295X2: Water-cooled, 5,632 stream processors, 11.5TFLOPS
Sony battery recall as VAIO goes out with a bang, not a whimper
The perils of having Panasonic as a partner
NORKS' own smartmobe pegged as Chinese landfill Android
Fake kit in the hermit kingdom? That's just Kim Jong-un-believable!
Gimme a high S5: Samsung Galaxy S5 puts substance over style
Biometrics and kid-friendly mode in back-to-basics blockbuster
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
HP ArcSight ESM solution helps Finansbank
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.