Although rumors doing the rounds last month suggested Nvidia was in talks with VIA over a possible acquisition, it looks like the two will collaborate instead for now. According to Digitimes, both companies have signed a “cooperation agreement” which will see VIA's C7 and C8 processors paired with Nvidia’s own IGP to form a new VN platform.

The move is aimed squarely at Intel’s Atom and Centrino products for sub-notebooks and handheld internet devices, though it could also have significant implications for VIA’s S3 graphic chips which are outshined by Nvidia's equivalent solutions. VN platform-based products will supposedly hit the market in Q1 2009.