Silicon Integrated Systems, a leading Taiwanese supplier of core logic and graphics chips, said Tuesday (Oct. 12) that it was acquiring the CPU technology from Rise is to expand its technology portfolio in order to fuel its continued long-term growth.

With this acquisition, SiS said it is now the only company in the world aside from Intel with a full platform of 3C technologies — CPUs, core logic, multimedia and connectivity — plus its own fab. This positions SiS as a leading supplier for delivering future high-integration solutions with the best cost/performance, the company said.

The move by SiS comes on the heels of Via Technologies' purchase of CPU products and technology with its purchase of Cyrix Corp. and the Centaur subsidiary of Integrated Device Technology. Both SiS and Via Taiwanese are motivated by the fact that the chip set business could be gone in a year or two.

"Although they are doing very well now, the approach of integrated CPU, core logic and graphics will be a reality soon," said a securities analyst here. "Right now though, even despite the earthquake, Taiwan's chip set companies are slaying. They are poised to churn out 17 million chip sets between the months of September and November."

SiS' deal with Rise is seen as an advantage to both companies, according to another securities analyst here. "Basically, they saved Rise," he said. "It will also give SiS access to the CPU technology they will need to compete next year."