ATI's Intel chipset deal amounted to 80 percent of its chipset revenue

WE FIND IT a bit of a giggle that ATI has the highest-performance and the most overclockable Intel Conroe chipset with its RD600 just around the corner. Naturally, since the AMD hook-up, ATI's Intel chipset dominance is set to vanish in quarters to come.

We must admit to being a bit shocked to learn that ATI made eighty per cent of its chipset revenues from its Intel chipset deal. Now Intel is withdrawing and doesn't want ATI's chipsets anymore. At least, it doesn't need it for the entry-level integrated chipset market, as its own 865G chipset can project a Vista premium compliant graphic.

Microsoft originally put Intel in misery by deciding that vertex shading has to be done in hardware for Vista. This was too much for Intel's integrated graphics to cope with. That's why you will get some Intel integrated graphics chipset with full Shader Model 4.0 support at some point in 2007.

And ATI's Intel deal is cast adrift to float down the swannee. AMD bean-counter Bob Rivet said yesterday the arrangement added up to some £100 million per quarter, while CEO Hector Ruiz reckoned the $100 million would be quickly replaced. What with, we wonder?

We can suggest no equivalent substitution. µ

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