VIA is said to be quoting some if its Pentium 4 chipsets to motherboard makers at below $10. Intel his lowest priced Pentium 4 chipset costs more than the double, $21.
As reported yesterday, VIA, currently trailing Intel and Silicon Integrated Systems (SiS) in the P4 chipset market, hopes to take second place before the second quarter of next year.
Sources said that VIA’s aggressive price cuts have forced Intel to quote its 865PE at under US$25, more than 22% less than its US$32 official quote price.
It is unclear how much SiS has been affected by the price war, but the company yesterday announced a revised 2003 financial forecast, slashing its 2003 revenue and pre-tax profit forecasts by 16% and 71%, respectively. SiS, in vague language, blamed fierce competition and lower-than-expected fourth-quarter sales.