nVidia to purhcase competing chipset manufacturer ULi

By Justin Mann on December 14, 2005, 10:37 AM
Uli, lately gaining respect with more powerful chipsets, especially the very new M1697, is, surprisingly to many, being aquired by nVidia. In a press release, nVidia confirmed initial reports.

”NVIDIA Corporation (Nasdaq: NVDA), the worldwide leader in programmable graphics processor technologies, today announced that it has signed a definitive agreement to acquire ULi Electronics Inc. (ULi), one of the PC industry's most highly-regarded core logic developers. Headquartered in Taipei, ULi also has offices in Hsinchu; Shanghai; Shenzhen; and San Jose, California.”
For around a total purchase value of $52 Million USD, nVidia will presumably be using technology held by ULi to help further the development of the nForce series, a more interesting battle of late as ATI begins wedging their way into the chipset market. After showing such promise, it is a wonder how ULi being bought out will affect the motherboards we have available to us.

User Comments: 4

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Didou said:
Most ATI based motherboards use Uli southrbidge chips as they're more reliable then ATI parts. Think nVidia did this on purpose ? :-P
iantony said:
I think so. Nvidia obviously has a lead over ATI with respect to the motherboard chipset market. Any company has to answer to their shareholders and compete, and ATI and Nvidia are no exceptions. Obviously ATI would like to take some market share away from Nvidia, and this is Nvidia's way of making that more difficult! As long as competition can continue I have no problem with it as it is good for the consumer. My concern is Nvidia acquiring a strangle hold on the chipset market. Intel Corp., VIA Technologies and Silicon Integrated Systems lose market share while Nvidia gains, while small fish like Uli just get eaten up. It will be interesting to see where things are at a year or two down the road.
mentaljedi said:
Poor Uli. Small fish is right but that's just the way it goes. Nvidia is being real clever about this but we'll just have to wait and see what effect this has (apart from shares going up). I totally agree with your concern iantony but as you said, compatition is good for us. I wonder if ATI will make some sort of comeback...
Bartzy said:
I dont understand why do you think this deal is not for the benefit of Uli. If they wouldn't want it, they wouldn't sign it. Simple as that. They are getting money, that they probably need, and probably the company will continue to work regulary.It really is weird that Nvidia is purhcase Uli just when its chipsets made their way to ATI Xpress 200 Crossfire Motherboards. They are pretty good, By the way (I tried DFI NF4 Ultra-D and ASUS A8R-MVP, and the nForce is better just by a bit, with the Crossfire advantage in favor of the Xpress 200).52 million ? Cheap ! :)
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