CEO Forum - Q3/2003

4. NVIDIA is relatively new to the chipset market, and right now we know they are eating into the production of VIA on the AMD side for motherboard manufactures. Would you and your company support NVIDIA plans to produce an Intel compatible chipset?

CEO #1: NVIDIA integrated graphics can be a plus for Intel platform.

CEO #2: I do not see how NVIDIA can have any edge over Intel on chipsets for Intel platforms.

CEO #3: But NVIDIA has got to come up with its plan first. At this moment, we have not been told about this project by NVIDIA yet.

CEO #4: We'd certainly look at the chipset and test and make a decision based on cost and performance and demand from the market. The chipset market has stabilized and motherboard makers prefer a stable market with stable pricing policies rather than a blood-letting like that which took place at the start of 2002 as a result of fierce competition.

CEO #5: It's depends on what product and marketing strategy that NVIDIA will propose. The background of Intel's product line compared with AMD's product line is totally different, after all.

CEO #6: We are a customer-oriented company, and we do our best to fulfill customers' demand in every aspect of PC components. Also, we have kept good relationships with all vendors such as Intel, AMD, VIA, SiS, NVIDIA, and so on for many years.
If customers are interesting in a new technology or product, we will always try our best to make it available.

CEO #7: Patent issues not resolved yet.

CEO #8: Such support will bring reasonable competition into the market, and we will benefit from it.

CEO #9: If NVIDIA has plans to do so, we would be happy to support them. But of course, NVIDIA has to get Intel's support first.

Opinions aside, the patent issues for NVIDIA to produce an Intel compatible chipset have not been resolved, as one CEO simply put it. A serious consideration for this type of product is there, but all of this hinges on NVIDIA's collaboration with Intel.

Coincidentally during the survey, ATI announced that they had reached an agreement with Intel, in which ATI has the rights to build integrated graphic processors that support the 800MHz FSB. This comes on the heels of ATI's announcement of the RS300 back in late June. It is hard to say if this will affect NVIDIA's chances for procuring a license agreement with Intel. If NVIDIA is able to get a license anyways, we may be on hand to see the accelerated maturing of the integrated graphics market, as the two significant graphics players compete in a whole new avenue.

At a glance, NVIDIA's success in the chipset market has been relatively quick, as they have begun to oust VIA in terms of total production at the major motherboard manufacturers. Our own inquires have given us numbers that run in the 40-60% range of NVIDIA's make up for AMD platform production at the Tier 1 manufacturers. This brought us to follow up by asking, "How do you see the roles of ALI, ATI, SiS, and or VIA in the market, going forward?"

CEO #1: VIA will always be a threat to Intel, due to CPU capability.

CEO #2: In general, ALI already switched their focus to optical solution (DVD). ATI may be a new player if their graphic performance can compete with NVIDIA. SIS is somehow fixed at low price position. VIA's position in AMD platforms is eating by NVIDIA. For Intel platforms, let's wait and see.

CEO #3: For the Pentium 4 Platform, by quantity, SiS > VIA > ATI. For the K7 Platform, by quantity, VIA > SiS > ATI

CEO #4:

ALI: Wait and see the war of K8 platform
ATI: Keep on watching RV300. Because of the close relationship with Intel, there maybe a deal about exchanging patients and sharing desktop market in the near future.
SiS: Much more aggressive product plan and product performance this year, but weak in channel market, branding is an issue from the viewpoint of the motherboard manufacturer.
VIA: Very tough situation at this moment, we are waiting their product strategy for the next step.

CEO #5: They have to focus on certain field out of the PC industry. Right policies & plentiful resources from their management will be key factor to decide whether or not they should succeed.

CEO #6: For the Intel platform, especially for mainstream market and above, Intel chipsets will be able to retain their dominance. Other players, such as SiS and VIA, would be only allowed to share the rest of the market.

CEO #7: Fighting for low end segment. VIA has potential to surprise with a hot chipset offering great performance, but with the more mature market, it looks like they have been delegated as a lower-end segment.

CEO #8: As we see it, all these vendors are good partners in business. In the last few years, our company does also provide products on the basis of their chipset. With outstanding R&D and marketing power, we believe they will do well in the future market.

CEO #9: VIA will be the only survivor in this group; SiS will be folded into the foundry business.

CEO #10: ATI may gain some share in the integrated chipset market. VIA is going to share the market with SIS on the Intel platform.

CEO #11: ALI is no longer a core logic player. SiS and VIA will gradually lose market share to NVIDIA and ATI, especially in the integrated graphics market.