ATI Technologies Inc is aggressively stepping up its efforts in the mobile graphics chip market with its Rage Mobility range, winning important contracts with Apple Computer Corp to supply chips for its iBook portable and Compaq Computer Corp for its new Armada notebook range. The Canadian company – which is the leading supplier of 3D graphics chips for desktop computers – is also supplying Sony Corp and Fujitsu Ltd with chips for their notebook ranges.
Jo-Anne Chang, director of investor relations, said that the mobile graphics chip market was becoming an increasing attractive prospect for chip manufacturers because the portable market was growing faster than the PC sector and higher margins could be realized on chips. ATI says it is number two in the market with a 15% share, according to Mercury Research. ATI started making mobile 3D graphics chips in 1997 when it introduced the LT Pro. By 1998 it had a 7% market share.
Josephine Mong, semiconductor research analyst at International Data Corp expects ATI to do very well in the mobile graphics market. She says that the company’s product range has several advantages over the current market leader, NeoMagic Corp’s line. NeoMagic, she says, has had problems moving to from a 0.35 micron to a 0.25 micron manufacturing process. And NeoMagic only offers 2.5Mb of memory with its chips, where ATI offers 4Mb or 8Mb.
Looking at other markets, ATI intends to partner with a chip infrastructure manufacturer to produce a low-cost PC chipset with integrated graphics functions along the lines of the ‘Whitney’ 820a chipset that Intel Corp plans to bring to market. Chang wouldn’t name the partner but Mong expects that it will be Reliance Computer Corp.
