The two-chip nForce2 is geared for AMD's Athlon XP and Duron processors. Nvidia does not have a license to build chip sets for the Intel processor bus, despite the fact that it crafted an integrated chip set for the Microsoft Xbox, which used an Intel processor.

The entry of graphics companies like Nvidia and its archrival ATI Technologies (Markham, Ontario) into integrated chip sets is heating up what was a consolidating market until recently.

"I haven't seen this much competition in the chip set market since 1994," said Dean McCarron of market watcher Mercury Research (Scottsdale, Ariz.). "Even if the PC market is flat, Nvidia can grow by expanding its chip set market share."

"We are in a take-share strategy and as such are not as directly affected by swings in the industry," said Drew Henry, general manager of Nvidia's integrated components business.

Nvidia launched its initial integrated graphics chip set at Taiwan's Computex in June 2001 and shipped the parts last October. It added a chip set without graphics early this year.

To date those chip sets have sold well over 100,000 units, according to analyst McCarron. "Typically a newcomer's first chip set doesn't have a chance at a first-tier design win, but they Nvidia have a couple," he said. "They have made significant inroads into the AMD chip set market, and this upgraded product will help them continue to do that."

The north-bridge component of the nForce2, called the Integrated Graphics Platform, now sports Nvidia's latest GeForce4 MX graphics core, announced in February. The part also includes an MPEG-2 decoder, a TV tuner with full high-definition capabilities and dual VGA or TV displays.

Eyeing the 'white box'

A version without graphics, the System Platform Processor (SPP), aims at the so-called "white box" makers of unbranded desktops that prefer flexibility to configure systems with separate graphics and other option cards. The SPP is Nvidia's first part to use an 8x AGP to an external graphics chip. The company's own GeForce upgrade for the 8x AGP port is expected in the fall.

Both the Integrated Graphics Platform and the SPP parts now support double-data-rate SDRAMs at 266/333 and 400 MHz. They also carry forward the same dual-memory-controller architecture of the original nForce and come in 840-BGA packages.

The north-bridge parts continue to use the HyperTransport interconnect to link to a separate Nvidia south-bridge chip, the Media and Communications Processor. A high-end version, the MCP-T, builds in two 10/100 Ethernet media-access controllers, support for six USB 2.0 ports, three 1394a ports and UltraATA133, as well as the company's high-end audio engine also used in the original nForce. Nvidia claims this is the first chip that will let OEMs support 1394 on the motherboard.

A stripped-down MCP takes out support for audio and 1394 and includes just one Ethernet MAC. Both chips support five PCI 2.2 slots and come in 484-BGA packages.

A future MCP may build in Gigabit Ethernet MACs and routing capabilities for use in a telecom line card, along with linking to network processors from companies such as PMC-Sierra that also use the HyperTransport interconnect.

Nvidia's Henry said the company is already far along in preparing an integrated chip set for AMD's upcoming Hammer processors. The part could merge graphics and the south-bridge functions into a single chip, he said.

The nForce2, made by Taiwan Semiconductor Manufacturing Co. in a 0.15-micron process, is designed to serve motherboards that will sell for less than $100. Nvidia says four motherboard makers in Taiwan, including Asus and Chaintech, will use the chips.