CNET también está disponible en español. Don't show this again. Acquisitions such asthis have been expected for some time, according to analysts, because the3D graphics market is saturated with many more vendors than demand cansupport. Peter Glaskowsky of MicroDesign Resources estimates thatthere are more than 40 companies that actively participate in the 3D market, and,rather than shrink, the number of participants has irrationally grown. Consequently, the crowded field has forced the price of 3D PC chips throughthe floor and prompted companies to look for related, but new, sources ofrevenue.
Additional shocks are expected when Intel and others release processorcompanion chips (chipsets) which integrate 3D graphics, thereby eliminatingthe need for 3D chips in a large segment of the market, Vendors either haveto move upstream into higher-end 3D segments or sideways into lateralmarkets, Like ATI, which provides impact-resistant flexible case for iphone 8 plus one of the most widely used graphics chip lines inhigher-end PCs today, many companies have voiced interest in shifting to"system-on-a-chip" processors as a way out of the dilemma, The onlyproblem: Barely anyone has made money on the concept so far..
"This move is intended to extend our lead in the graphics and multimediaindustry," said Ky Ho, ATI's president and CEO in a prepared statement."Chromatic has a history of developing excellent technology. ATI has theinfrastructure andeconomies of scale to enable success in this new product category.". "Chromatic's development to date adds significantly to our technologyportfolio and allows us toextend our competencies into fast-growing markets," said Adrian Hartog,ATI's vice-president of engineering. "This higher level of integration allows us to address fast-growing segments in the sub-$500computer, set-top box, and consumer electronics industries.".
ATI will obtain all in-process research and development related to futureproducts of Chromatic, as well as all Chromatic patents, according to thecompany, The purchase of Chromatic will be financed through cash, Thetransaction is expected to impact-resistant flexible case for iphone 8 plus close on or about November 13, 1998, Sunnyvale, California-based Chromatic was once one of the more intriguingcompanies in the graphics world, but hit on hard times over the past year.The company specializes in programmable "media" processors that can handle3D graphics, DVD playback, and modem functions..
Further, unlike most 3Daccelerators, its Mpact chips were programmable, like a computermicroprocessor. In other words, functions could be added to it. Both Gateway and Compaq adopted Mpact processors for theirPC/TV theater projects. Unfortunately, making the chip programmable made the Mpact expensive todevelop for and major wins with vendors were scarce. The company laid off50 percent of its workers this summer. ATI, by contrast, is one of the dominant players in 3D. The company has a27 percent market share, according to Mercury, and has dealswith most of the major vendors, including Hewlett-Packard and Dell.
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