Via aims to supply the processor to companies making personal computers that cost US$500 or less, while rivals such as Intel Corp focus on the high end. Via said its C3 processor is priced at US$54. A similar Celeron processor from Intel sells for about US$70, according to analysts.
"My estimate is that Via will sell its chip to PC makers for about US$40," said Richard Ko, an analyst with Deutsche Bank Securities in Taipei. "If Via is able to reach a production cost of US$30, it should make good profits."
The processor is about half the size of the Intel Celeron and the Duron from Advanced Micro Devices Inc, which means Via can make nearly twice the chips from one silicon wafer that Intel or AMD can. That gives the company a cost advantage, Ko said.
Taiwan Semiconductor Manufacturing Co, the largest chip contractor, is making the new processor for Via.
Via shares rose as much as NT$11, or 3.3 percent, to NT$346 in early trading on the Taiwan Stock Exchange. The shares are up 87.9 percent this year.
More savings
Via said the new processor generates less heat, allowing computer makers to eliminate cooling fans in PCs. Doing without a fan reduces the demand for power, thereby increasing battery life and cutting material costs.
Eliminating the fan from a notebook PC also helps computer manufacturers make slimmer products, a key selling point for portable electronic products.
"The Via C3 sets the new de facto standard for affordable, low-power x86 (PC-compatible) processors," said Via President Wen- Chi Chen in a statement.
"The product is the only one that does not require a fan," said Ko. While US processor designer Transmeta Corp says its Crusoe processor also eliminates the need for a fan, PC makers need to redesign their products to accommodate the chip.
The Via C3 processor's power consumption is comparable to that of the Transmeta Crusoe, Ko said.
The C3 processor, made with 0.15 micron manufacturing technology, more than doubles the number of chips that can be produced from a silicon wafer, compared with the 0.25 micron technology more commonly used to make chips today. Intel and AMD will likely cut costs of their processors as they start using 0.13 micron technology later this year.
Play video
There are currently no comments for this post.