Via Technologies, once the No. 1 supplier of chipsets and currently a second-tier chipset maker, has reportedly announced restructuring plan, under which the company would be split up in three business groups that will focus on marketing microprocessor-based platforms, chipset products and multimedia-related products.

From now on, Via Technologies will consist of three core business groups – CPU Platform, System Platform and MCE (Multimedia Consumer Electronics) – in an attempt to strengthen its efficiency and competitiveness, DigiTimes web-site reports. Via Technologies is reportedly responds to new market realities, when Advanced Micro Devices and ATI Technologies effectively become one company and Intel is more and friendlier with companies like Nvidia Corp. and Silicon Integrated Systems Corp. 

It is important for Via to diversify its business further, as the company has so far been relatively successful with its microprocessor products as well as special-purpose chips businesses. Meanwhile, the company’s chipset division has been facing strong challenges. By splitting the company into several units, Via Technologies lets the strongest business division to develop further, while let the others to develop on its own.

For Via, getting back to the mass market of Intel-compatible chipsets is crucial, as in the year 2007 and beyond there will be no at least one competitor there: ATI Technologies will cease to develop and eventually sell chipsets for Intel processors starting next year. At the same time, AMD’s chipset division will be far more aggressive in future, which will mean that there will be much less space for Via in the market of chipsets for AMD processors. This essentially means that Via’s chipset division is doomed, unless the company manages to accelerate the roadmap of chipsets for the forthcoming Intel microprocessors.

The web-site further reports that Wen-chi Chen will remain as the company’s president and chief executive and become the general manager of the CPU Platform group, while two existing senior vice presidents will head System Platform and MCE business units.