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INTEL Forces VIA to Stop Making CPUs VIA must stop its CPU line in order to keep producing motherboards for INTEL	By Ionut Ciocirlie, Hardware Editor 24th of November 2006, 15:28 GMT Adjust text size:


I guess there are some moments when it's enough to read the title and you get the idea. However, due to the fact that it is an interesting form of negotiation, we have to detail it a little. First there's the known fact the INTEL is applying a great amount of pressure on VIA based on the fact that VIA's license to manufacture motherboards for INTEL is about to expire (acquired in April 2003 with a validity period of 4 years). And in order to maintain the motherboard line, VIA has to possess a new one. The only problem is that INTEL will not approve a new license until VIA exits the CPU business. And that's the short story. Obviously, no one from the two companies has commented on this story and the silence will remain "golden" during the entire negotiation period. It's a tricky business for VIA to work with INTEL since both its motherboard and CPU lines bring a significant amount of money to them but INTEL knows that VIA wants a bigger market share when it comes to INTEL compatible motherboards, especially with Ati out of the picture. As a reminder, VIA has produced a profit of $22.5 million in the first nine months of the year, compared to an $18 million loss last year. And while that's nothing to be proud of, it's not too bad, at least when compared to 2005. It's a tough one for VIA then, especially since more manufacturers have manifested a real interest in introducing tablet PCs and UMPCs based on the C7 ULV CPU.

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