Nvidia's Plans Do Not Include Letting Its Chipset Business Go

By Michael Todd
15:18, August 4th 2008
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Nvidia's Plans Do Not Include Letting Its Chipset Business Go

The many rumors about Nvidia’s intentions to quit the chipset business made the company come out with a statement explaining its plans to keep the division, which is as strong as ever. The company wanted to make it clear that such a move wasn’t even considered by its board of executives, as it is one of its most profitable businesses.

The news about Nvidia’s new business direction was first presented by Digitimes in one of its articles. At this point, the California-based graphics chip maker demands a full retraction of the story, as it considers it to be "false" and "groundless." Even though Digitimes did not act on the request, standing by its story, it is indeed mentioned on the Web site Nvidia’s official position.

The journal quotes sources which say that several Taiwanese motherboards makers "have already canceled upcoming high-end motherboard projects based on the nForce 7-series chipset." Whether this information is indeed legitimate will surely be determined in the near future, once the company’s collaborators will come forward with their statements. Also, Digitimes talks about Nvidia’s need to "find a way of licensing and enabling multi-GPU support on motherboards using Intel and/or AMD chipsets fast" in order to avoid falling behind AMD in the graphic card market, which now benefits from CrossFire.

Michael Jong, senior director of corporate marketing for Nvidia APAC, explained that such a move would not even make sense for the company, which is registering excellent sales for both of its Intel and AMD platforms.

The company’s official statement clearly expresses its direction for the future, as Nvidia’s market share of AMD platforms in Q2’ 08 was holding strong at 60 percent, a performance constantly reached over the past two years. There is no doubt that all efforts will be focused on keeping the same trend and if not exceeding the past performances, at least holding on in the 60 percent sales area.

"Contrary to popular perception, we have not lost any ground to AMD, despite their chipset introductions over the last year or so," said Mr. Bryan Del Rizzo, Nvidia’s representative. He also stated that the company is looking forward to developing new, exciting and useful MCP (Media Communications Processors) products for both the AMD and the Intel platforms.

Another rumors connected to Nvidia refers to the possible upcoming deal with Apple for its MacBook division. There are several companies which constantly appear when the subject is discussed, including Intel, AMD and VIA and because they all stick to the same ‘No comment’ policy, no further information is available.

Nvidia is a multinational corporation based in Santa Clara, California, and it is specialized in manufacturing graphics-processors for a large number of devices. The company was founded in 1993 and after a series of acquisitions which included ULI Electronics, Hybrid Graphics and PortalPlayer, managed to become one of the market’s main players, going head to head with its rival AMD.

Since the release of its first graphic chipset, the NV1, many more followed, including Nvidia GeForce, Quadro, Tesla and GoForce.



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