Following a board meeting last week, VIA has come to the conclusion that it needs to cut capital to NT$5.17 billion ($153.4 million USD), a 60 percent reduction. A shareholder meeting on June 19th will decide when the reduced capital will take place. As a result of the planned reduction, VIA said it expects shares to improve to $NT11.36, or almost three times as much as the current NT$4.50 share price.
VIA didn't say what effect the reduced capital would have on its Nano processor roadmap, which could put the heat on Intel in coming months. Citing un-named market sources, news and rumor site DigiTimes notes that demand for Intel's Atom netbook CPUs has been slowing down lately in the wake of price cuts by low-end notebooks. The sources also attributed the reduced demand to consumer anticipation of the next generation of Atom processors, currently scheduled for the second half of this year.
Image Credit: VIA