ATI Set to Acquire XGI Technologies ? Claim

[fliguy84]

ATI Technologies, a major supplier of graphics and multimedia processors for personal computers and multimedia applications who recently announced plans to accelerate its acquisitions, may be targeting to buy a minor player of the graphics chip market, XGI Technologies.

Chinese-language web-site HardSpell has reported that ATI will shortly announce acquisition of XGI, a Taiwan-based graphics chip designer, which was a spin-off from Silicon Integrated Systems originally. The web-site claims that the acquisition is to be announced Friday, the 3rd of March. Some other unofficial reports also claim about the intention of ATI to take over XGI.

This is not the first time when ATI is rumoured to acquire XGI. Back in 2004 such information was denied by both companies and the acquisition was proclaimed to be unreasonable by analysts. Moreover, the acquisition of XGI would not be consistent with the take over strategy of ATI, who has been acquiring companies in the consumer electronics fields in the recent years.

In 2004 the price that ATI would pay for XGI was $75 million, but since then XGI has not launched any products competitive in the mass market, though, has managed to release several chips that were adopted in several niche markets.

Recently Nvidia Corp., ATI?s arch-rival, acquired Uli Electronics, a struggling chipset designer from Taiwan to boost its presence in Asia and get some valuable technologies. A reason for ATI to take over XGI could be similar.

ATI Technologies and XGI Technologies could not be reached for comment.

This is great. What do you guys think?

 

[dug777]

I still want a V8 Duo

My FS/T thread hasn't got any love tho

 

[Gamer X]

So what does XGI has that can be of use to ATI ?

 

[Peter]

XGI, apart from making fairly decent low-end to midrange discrete graphics chips, are the supplier of graphics engines to SiS, who in turn have quite a market share in the integrated-graphics chipset business.

Having XGI go to a competitor in that arena would leave SiS without graphics cores to use ... so really, with SiS owning the majority of XGI, I can't see that happen. But then I'm an engineer not a corporate strategist.

 

[ArchAngel777]

You drive trains? Cool! J/K

 

[Cooler]

at this rate all mobos will be ATI, Nvidia or Intel 3rd party mobos will be killed off...

 

[jazzboy]

Just great. So yet another video chip company that perhaps could have one day (though I have no real idea) have been a serious 3rd competitor is bought out.

It could be me, but I do just get rather tired of all the constant ATI and nvidia battles (and their over-pricing).

A third competitor in my eyes would always be welcome.


Why is it that we never see XGI's or S3's new cards reviewed on major websites (other than Xbitlabs). S3's cards do seem quite competitive to ATI & Nvidia's low-mid range. I'm sure that the lack of reviews doesn't exactly help these smaller companies.

 

[Ronin]

Originally posted by: dug777
I still want a V8 Duo

My FS/T thread hasn't got any love tho

I've got one, but you don't get it. (2, actually).

 

[Fox5]

Originally posted by: Gamer X
So what does XGI has that can be of use to ATI ?

Asian supply lines and market.
China's an emering market, it's nice to have a stranglehold on it.

 

[fliguy84]

ATI probably gonna use this to penetrate into the Asian market

 

[Creig]

Originally posted by: fliguy84
ATI probably gonna use this to penetrate into the Asian market

Think ATI will have a cigarette afterwards?

 

[imported_thefonz]

Originally posted by: Creig

Originally posted by: fliguy84
ATI probably gonna use this to penetrate into the Asian market

Think ATI will have a cigarette afterwards?

lol

 

[Acanthus]

XGI was pretty much a joke. They have had a couple nice niche products, but they arent competitive even at the midrange.

 

[Killrose]

ATi should have bought ULi instead.