Intel buys entry-level chipsets from ATI

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Silicon Integrated Systems (SiS) and ATI Technologies may be jumping with joy on news that Intel is geting out of the entry level chipset market and is going to start buying chipsets from ATI for next quarter. ATI (ATYT) is currently trading up $0.03 at $13.50 and Intel (INTC) is down $0.26 trading at $24.99 near the noon trading hour.

Intel has placed orders for PCIe-enabled RC410 chips from ATI Technologies in order to maintain its supply of 915-based motherboards as the chip giant is reportedly to phase out its 865 and 915PL/GL chipsets in the fourth quarter and exit the entry-level chipset market, the Chinese-language Commercial Times reported today. The Commercial Times said Intel will buy ATI?s RS480 for its 915-based motherboards, but DigiTimes sources indicated that the chipsets should be RC410, instead of RS480.

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