Silicon Integrate Systems Corp., a well-known chipset designer, has confirmed reports about its intention to supply memory modules for desktops and notebooks. Entering the business may potentially allow SiS to be less dependent on its chipset sales and own a more stable business.

According to a publication from DigiTimes, SiS has already purchases several testers for memory modules, besides, parent company United Micro Electronics and its affiliated companies are also expected to help SiS with “raw materials” as well as testing. SiS is projected to start shipping its memory modules to clients among personal computer (PCs) makers in the second half of the year after the modules receive validation from the customers.

SiS’ chipset market share decreased from 10% to 7% throughout Q3 2004 – Q1 2005 period. However, it improved to 12% in Q1 2005 when the company managed to increase its sales volumes.

Contrast prices of memory modules are relatively stable and SiS will be able to boost its revenue and profits without high risks. In case it would sell its memory modules only to its OEM partners, it may not face fierce competition from other makers of memory modules.

According to the reports, the main products of the SiS’ memory division will be PC2-6400, PC2-5300, PC2-4200 PC3200 memory modules for desktops and notebooks.