ATI Strikes Deal With Intel

ATI and Nvidia remain focused on their discrete graphics card business, but apparently expand their reach into lower margin areas to increase production volume: While Nvidia is preparing the launch of its C51 integrated graphics processor (IGP), ATI convinced Intel to use its Xpress 200 chipset on entry level Intel-branded boards, sources told Tom's Hardware Guide.

Despite much media coverage of the graphics industry is focused on ATI' and Nvidia's battle for the highest performing chips, the leadership in total market volume is wrangled out on a different field. In fact, both ATI and Nvidia are trailing Intel in terms of shipped graphic chips by a wide margin: Simple IGPs allowed Intel to reach a 43.7 percent market share in the second quarter of this year, according to Jon Peddie Research. ATI follows as a distant second with 26.8 percent, Nvidia's so-far non existing IGP business resulted in only 15.9 percent market share in the overall graphics chip market.

News source: Tom's Hardware Guide

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