It's been a turbulent couple of years in the memory market, and just when it looks like things might be stabilizing, we catch wind of a DRAM shortage or some other bit of troubling news.
Stepping up as unlikely heroes, Asus and Silicon Integrated Systems (SiS) have teamed up to form a joint venture intent on making sure there's a steady stream of DRAM products without all the price fluctuations. Called Asint, this new company will mostly source DRAM chips from Elpida Memory, or so says Chinese-language newspaper Economic Daily News.
According to the paper, Asus will hold a 60 percent stake in the venture, leaving 40 percent to SiS, but neither one of these companies say those numbers are accurate. SiS, who made it clear that they're not the source of the report, said their stake is just 20 percent, while Asus issued a filing with the Taiwan Stock Exchange saying it holds a 16.67 percent stake. These numbers obviously don't add up, so maybe they won't end up saving the memory market after all.
The summer hasn't been particularly kind to Silicon Integrated Systems, who saw its revenues for August tumble 25.8 percent on year to $413.4 million. However, that figure also marks the eighth consecutive month of growth for the entry-level and IGP chipset maker.
SiS said it expects growth to continue to the tune of 20 percent for the third quarter, and they're probably right. The growth in August can mainly be attributed to rising sales of entry- and mid-level PC chipsets, as well as Xbox 360 southbridge chipsets, the company said. And with the Xbox 360 recently receiving an attractive price cut, SiS could potentially do very well in the console sector.
SiS currently supplies budget chipsets to Asus, ECS, and Clevo, among other less recognizable brands.
Taiwanese company Silicon Integrated Systems has dismissed rumors that it is going to shut down its PC chipset business. It is now going to concentrate its resources on developing southbridges. SiS will persist with its PC chipset business and satisfy whatever demand there is for its products until 2011. It is currently concentrating on providing notebook chipsets. SiS supplies notebook chipsets to around 20 notebook manufacturers. Cut-throat competition and the precarious state of the global economy have made life difficult for SiS.