DigiTimes claims Intel is planning to exit the entry-level chipset market by phasing out the 865 and 915PL/GL chipsets in the fourth quarter of this year.
Intel declined to comment but it seems they recently told first-tier motherboard makers and OEM clients about the decision. In short-term the move is expected to dampen the entry-level and mid-range motherboard market, and it may benefit competitors such as SiS, VIA, ULi and ATI.
However, whether Intel’s competitors can really increase their shipments of low-cost chipsets will hinge on their ability to secure production capacity from foundries, whose capacities are currently running tight, the sources added.
It's reported that SiS has secured a promise from UMC for more capacity, but SiS expects it's 661 chipset will be in short-supply through the end of this year.