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Reportedly the first batch of SiS chipsets made by UMC was completed last week, a bit earlier than it was scheduled, but still too late to be sold quickly during the Christmas season. In addition, Taiwanese news-papers indicated that yield rates of SiS’ chipsets made using UMC manufacturing technology are still not as high as on SiS’ own fab.

Usually SiS and VIA can boast with great sales in October, November and January, when computer components makers as well as PC vendors buy a lot of core-logic products prior to Christmas in Western Countries and Chinese New Year in Asia-Pacific region. It was a critical task for SiS to deliver a lot of its integrated SiS65x series of chipsets products to the Chinese and Taiwanese markets because cheap computers are very popular in these countries. Now SiS will be harder to sell off the inventory, as the demand in the first quarter, especially in February is low all around the globe.

What is still very good about SiS and UMC collaboration is that now SiS is going to become capable of offering more products and hence will be able to occupy higher market share. Beware, Intel?

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