08.22.2001
VIA to benefit from chipset price war

• Development: In response to Intel’s aggressive new pricing effective 26 Aug., US-based AMD, which currently commands 22% of global CPU shipments, will announce a price reduction to maintain price competitiveness.

• Analysis: VIA (2388) is estimated to supply over 70% of chipsets for AMD CPUs, and therefore stands to benefit from AMD’s move in terms of maintaining market share.

• Primasia View:. We believe VIA is increasingly likely to post sequential revenue improvement through end-2001, and maintain our neutral rating on this counter.