11.15.2001
Rumors of Intel-VIA resolution unfounded

• During our visit, a VIA spokesperson dismissed rumors that the Intel-VIA dispute had been resolved. Other than the royalties issue, VIA also pointed out that Intel required cross-licensing on the IP that VIA considers one of its key strategic weapons with which to compete with Intel head-on. The latter recently announced that P4 chipset supporting P4 (845b) will start volume shipments in Dec. Although VIA is now the major chipset vendor in the segment, SiS (2363 TT) and ALi (5393 TT) are also ramping up volume on similar solutions for Dec. We do not believe the much-awaited resolution on P4 licensing can be reached any time soon and remain concerned on VIA's outlook into 2002. Share price hit high-end of our recommended trading range (made in mid-Oct.) as at yesterday's close (NT$105.5). We maintain Neutral on the stock and recommend taking profit.