Via aims to become next $1 billion IC maker in Taiwan, preps 1-GHz processor

 
TAIPEI, Taiwan -- Via Technologies Inc. will shortly unveil a new corporate and product diversification strategy that could turn the company into the next $1 billion chip maker in Taiwan.

As part of its new and aggressive product strategy, Via is readying its first 1-GHz microprocessor and chip set line that supports the 333-MHz version of double-data-rate (DDR) synchronous DRAM standard. The company will offer two DDR333 chip sets, which will support processors from Advanced Micro Devices Inc. and Intel Corp.

The Taipei-based company also hopes to expand beyond its core PC chip set and processor roots by entering the CD-ROM controller and other new and emerging IC markets. It also hopes to expand its fledging communications-chip business as well.

"In short, we are transforming ourselves from being a chip set company to a complete platform provider," said Richard Brown, director of marketing for Taipei-based Via, in an interview with SBN.

To help its cause, Via is reportedly about to unveil its so-called "Canaan Project." The project reportedly involves a reorganization under which Via will split its operations into five product groups--processors, chip sets, graphics ICs, optical, and networking, according to the Taiwanese Web site DigiTimes.

The new organization, coupled with its product diversification strategy, are designed to boost its sales and market share figures. In fact, Via is already a major factor in chip sets. It claims to be the world's second largest chip set marker, with 40% market share in 2001, trailing only Intel.

For 2001, Via posted a net profit of $151.1 million on sales of $973.3 million. Some 80% of the company's sales are tied to its PC chip set business, according to analysts.

Last year, Via surpassed Winbond Electronics Corp. to become Taiwan's third largest IC maker in terms of worldwide sales, according to analysts. Last year, silicon foundry giant Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC) was the largest chip maker in Taiwan in terms of sales, followed by rival United Microelectronics Corp. (UMC).

In 2002, Via's sales are projected to grow by 20%, said Chen Wen-chi, president of the company, earlier this week (see Jan. 30 story ). If Via should realize its lofty goals, the company could surpass the $1 billion barrier in terms of sales for 2002, according to analysts.

But going into 2002, Via faces some major challenges, including the slowdown among its key customers in the PC industry. The worldwide PC business appears to be soft right now, but demand is expected to pick up over the next year, said Via's Brown. "I wouldn't really describe any markets as being hot right now, but we do see signs that things are beginning to warm up after a long, hard winter," he said.

The company, which believes it is well positioned for growth in spite of the current downturn, plans to launch a slew of new products this year.

For example, in the first quarter of 2002, Via is expected to announce a 1-GHz version of C3 microprocessor line, which is based on 0.13-micron technology. At present, the company's fastest C3 processor runs at 933-MHz.

The company is also reportedly working on a "Pentium 4 clone," which is said to be pin-compatible with Intel's Pentium processor family. Last year, Via dropped hints that it is working on this chip at last year's Microprocessor Forum (see Oct. 16 story).

"Chip sets will continue to be our primary business, and we believe that we still have strong potential to continue to grow this business in 2002," Brown pointed out. "Our focus in the first quarter of this year is the successful roll out of our DDR333 chip sets, the KT333 and P4X333," he said.

The KT333 reportedly supports PCs based on AMD's processors, while the P4X333 is a Pentium 4-compliant chip set. Both chip sets supports DDR SDRAM and other features, the company said.

Via is reportedly experiencing brisk sales with its existing Pentium 4-compliant chip sets lines, but the product line has been controversial-at least on the legal front.

For example, Via last year rolled out its first Pentium 4-compliant chip set without obtaining a license from Intel. As expected, Intel filed suit against Via last year. In response, Via filed a counter suit against Intel (see Sept. 10 story).

In addition to chip sets and processors, Via has its eyes set on other markets as well. "At the same time, this year we are also going to aggressively expand our other businesses," Brown said.

Via is "building up our presence in the networking market, where we will be launching more advanced Ethernet, switching, and router chips. Most recently, we have started shipping CD-ROM controller chips," he said.