ATI and Nvidia chips to stoke graphics war

[ecperez]

Market share competition between the two major graphics chip suppliers is heating up again with ATI Technologies planning to launch a new marketing campaign and more chips, while Nvidia is starting to release samples of its first AGP 8x-based NV18 chips.

After the earlier rollout of its new-generation graphics chips, ATI is now trying to expand its market share through marketing efforts. Wang Pao-chu, CEO for Greater China at ATI, said that due to the effectiveness of the company?s SIPP (System Integrator Partner Program), which was launched in the European and US markets in March, ATI is planning to introduce the program to its Asia-Pacific operation.

The APPP (Asia Pac Partner Program) will be launched in September, ATI said. Participating regional SIs (system integrators) and retailers will benefit from a rebate of between US$1 and US$5, depending on product lines, when purchasing products from ATI?s verified card-manufacturing partners.

Meanwhile, ATI has also decided to set up an office in Shanghai next month, further strengthening its operation in China. With the APPP, ATI hopes that it will claim a share of over 50% in China?s clone market.

The Canadian graphics chip designer is not relying solely on the new marketing strategy to expand its market share. According to sources, to maintain its momentum, ATI plans to introduce the Radeon 9700 chip, a simplified version of the company?s R300-core Radeon 9700 PRO, and the Radeon 9500 chip, also a simplified R300 product with only four pipelines.

Before its archrival Nvidia introduces its high-end NV30 at the end of this year, ATI will add one 0.15-micron-process R350 chip into its product portfolio, sources said, and later debut its first 0.13-micron, light version of the RV350.

Nvidia, after months of market speculation, finally introduced samples of its NV18 chips at the Plugfest validation event held by VIA Technologies on August 28. The company?s new AGP 8x-based chip should be launched by the end of the third quarter.

As for the company?s NV30 chip, industry sources revealed that the postponed launch is due to a design change, not a yield rate problem in Taiwan Semiconductor Manufacturing Company?s (TSMC) 0.13-micron process as market rumors suggested. Hoping to enhance the product?s overall performance to compete with ATI?s top-end Radeon 9700 PRO, the sources suggested that Nvidia may alter its original six-pipeline architecture to an eight-pipeline one.