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Xbox 360 launch to boost ATI and SiS 4Q performance !   Logged in as: Guest
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Xbox 360 launch to boost ATI and SiS 4Q performance ! - 11/22/2005 12:37:37 PM   
SiliconFreak


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From: Melbourne, Victoria, AUS
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Today’s release (November 22, US time) of the Microsoft Xbox 360 will be driving performance of graphics chip provider ATI Technologies and Silicon Integrated Systems (SiS) in the fourth quarter of this year, according to market sources.

In addition, the sources anticipate foundry service providers for ATI and SiS, Taiwan Semiconductor Manufacturing Company (TSMC) and United Microelectronics Corporation (UMC), will likely benefit from the huge demand for the game console, which CNET cites Microsoft executives as saying that three million units will be sold worldwide in the first three months of launch.

ATI places graphics processor foundry orders for the Xbox 360 with TSMC at the foundry’s 12-inch fab on 90nm production node, the sources noted. SiS is the sole southbridge supplier for the game console, with the chips mainly being manufactured at UMC’s eight-inch fabs on the 0.15-micron node, according to the sources.

SiS declined to comment on Microsoft’s order for its southbridge chip. However, the company stated that its chipset shipments will grow from two million units in October to 2.5-2.6 million this month. SiS earlier estimated its chipset shipments would reach seven million units in the fourth quarter.

In related news, ATI has began implementing an 80nm process technology at TSMC to produce its R505 graphics chip, for better production cost efficiency as well as gaining competitiveness in the PC gaming market, sources at graphics card makers indicated. Launch of the chip is slated for the first quarter of 2006, the sources noted.

Xbox assembly orders to drive Wistron’s performance up
 
A recent report by Morgan Stanley stated that Wistron will represent 43% of Xbox production in 2005 and approach 50% by 2007, up from 32% in 2004. The company may ship 4.5 million Xboxs in 2006, up 67% from 2.7 million units estimated for this year, the investment bank said.

Morgan Stanley has upgraded its earnings per share (EPS) forecast for Wistron to NT$2.87 (US$0.09) in 2005 and NT$3.87 (US$0.12) in 2006, up from original estimates of NT$0.94 (US$0.03) and NT$1.20 (US$0.04), respectively.


Source : DigiTimes
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