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SiS stated that its current capacity now fulfills large orders that the chipset maker had on its books since the latter half of this year due to an upstream component shortage. SiS’ tight supply limited its sales growth in the third quarter, but gross margins remained strong at more than 30%, according to the company.

In addition, sources indicated that the reserve inventory of Intel chipsets of OEM players has been released to the channel market because demand for entry-level PCs did not meet their expectations. Current Analysis senior analyst Toni Duboise was quoted on ZDNet as saying that the Intel chipset shortage, which reportedly began this summer, had forced PC manufacturers to start stockpiling in order to prepare for the holiday shopping season.