Following the Nvidia's decision to take over Taiwan-based chipset maker ULi Electronics by the end of the first quarter, 2006, ATI Technologies, is preparing new replacement southbridge chips for when ULi suspends its supply. Afer being acquired by Nvidia, ULi will continue to develop southbridge and single-chip solutions, said Nvidia, adding that the two companies are aiming to integrate their R&D capabilities and co-develop products for the Nvidia brand only.

Recent rumors indicated that Nvidia may maintain the ULi brand for its entry-level chipset series, whereas the Nvidia brand will target the high-end segment.

ULi built up its brand awareness while bundling its M1573 southbridge chip with ATI’s RC410 northbridge, thanks to a long-term tight supply of Intel’s 865- and 915-series chipsets, sources at Taiwan motherboard makers indicated. Shipments of ATI’s PCI Express chipsets have at the same time climbed significantly, indicated the sources, noting that the most likely reason for Nvidia acquiring ULi was to weaken ATI’s recent expansion in the global chipset market.

To replace ULi’s supply, ATI has scheduled roll out of a new southbridge chip by the second quarter of this year, the SB600, adding to its current offerings including the SB450.