Pricing pressure and a growing emphasis on the core-logic chip set as a command-and-control center in low-end PCs are leading to increasing integration of graphics ICs.
Intel’s departure last week from the market for discrete graphics chips illustrates the trend. Trident Microsystems may follow suit, and Nvidia’s recent partnership with Acer Laboratories futher underscores the new market reality.
Observers says the moves are being driven by low-end PC makers seeking to eliminate the cost of a stand-alone graphics chip.
Intel has confirmed that it will not commit to volume production of its 752 or 754 graphics accelerators, successors to its i740 stand-alone graphics chip that was phased out earlier this year. An Intel spokesman said the company is going with the graphics trend toward integration, at the request of its PC OEMs.
A complete analysis is posted at www.techweb.com.