The market for 3D graphics is growing despite a lack of mainstream commercial 3D applications. According to market researchers Jon Peddie Associates, shipments of 3D graphics semiconductors exceeded eight million units in the first quarter of this year causing the researchers to revise estimates for market growth upwards. 3D graphics semiconductors now represent 36% of the total market for graphics semiconductors. The market is dominated by S3 Inc, ATI Technologies Inc and Matrox Corp. In the first quarter of 1997, S3 had a 48% share of this market, while ATI had 27%, and Matrox Corp is estimated to have had a 19% share. 3Dfx Interactive Inc dominates the performance segment of the 3D graphics semiconductor market while 3Dlabs Inc leads the pack in workstations.
