Via Technologies Inc., Intel's closest rival in the chipset market, posted a 17.1% gain to $88.2 million from September. Taipei-based Silicon Integrated Systems Corp. said that its sales totaled $29.1 million, rising 11% over the same period.

What surprised many analysts is that Via shipped more double-data-rate (DDR) chipsets featuring P4 than expected even though it hasn't received a P4 license from Intel. "Our P4 x 266 chipsets have rapidly become popular in the market," according to a statement from the Taipei-based company, adding that shipments in October surpassed its monthly target of one million.

To stimulate business for its P4 chipset, Via recently entered the motherboard market by setting up a new business unit to have the island's companies make the boards for Via on a contract manufacturing basis. Via's allegedly illegal use of Intel's technology in its P4x266 chipset and C3 microprocessor has triggered lawsuits in Germany, Taiwan, the United Kingdom, and the United States.

SiS credited its increased sales to the "strong endorsement from trade journals and warm reception in the marketplace" for its 645 chipset. With a P4 license that has been granted by Santa Clara, Calif.-based Intel, "All of Taiwan's tier-one and most of the tier-two motherboard makers are scheduled to launch SiS645-based products by the end of November," it said. About four in five motherboards the world uses are made in Taiwan.

Later this month, SiS is poised to launch a joint program with Asustek Computer Inc. to promote its new P4S333 boards -- which support the SiS645 chipset -- in Beijing, Shanghai and three other major Chinese cities, said Ellie Yin, a spokesperson of SiS. Asustek is Intel's largest motherboard in-house on the island. Similar promotions will take place later with Microstar International Inc., a tier-one board manufacturer, Yin said.

SiS's goal is to ship 4.5 million 645 chipsets in the three months to December, compared with 3.6 million a quarter ago, according to company president Samuel Liu.

The combined shipment from Via and SiS suggests that Taiwan is likely to maintain its No.1 spot in the chipset market. "With Intel introducing the P4 platform, there have been concerns that Taiwan wouldn't be able to extend its top ranking in the PC 133 platform to the P4 race," said Eric Chen, an analyst for SG Securities in Taipei. "But now, it seems the concerns were unnecessary and November and December will be a critical time to find out whether Taiwan can keep its lead in the race."

Intel owns a 45% share in the PC 133 market, while Via, SiS and Acer Laboratories Inc. together hold 55%, analysts said.As the chances for Intel to give Via a P4 license anytime soon are limited, analysts and motherboard companies are expecting SiS to be the Taiwanese design house that benefits most from the P4 market.

"Shipping motherboards with the SiS645 chipset won't {get us}sued by Intel," said an official at Elitegroup Computer Systems Co., Taipei. a tier-one mainboard producer. "On top of that, its price is cheaper and performance isn't bad at all."

SiS645 is sold at $24 - $26 each, lower than $26 - $29 for Via's P4x266 and $37 - $40 for Intel's 845 SDRAM chipset, industry sources said.

The improved sales in October were also attributed to more demand for the K7 line of Advanced Micro Devices Inc., said Miller Chen, finance director of Via.

From January through October, Via said sales were up 13% to $840.6 million from a year earlier, while SiS's surged 30% to $240.0 million.