Graphics chip maker S3 Inc has revealed one of the big three OEM deals for its Savage4 chip promised back in March (CI No 3,616). Yesterday, IBM Corp announced that it would use the graphics accelerator in the next generation of its consumer PC line. S3 said the deal would help it win back the number one slot in PC graphics it has lost over recent years to ATI Technologies Inc. The deal is S3’s first ever consumer design win from IBM, although it has signed graphics deals with IBM’s commercial divisions.
In March, S3 claimed to have won 36 new customers for Savage4, including three of the world’s top five OEMs. The deals would bring in $150m in revenue, it said. Later in the month, Micron Electronics Inc said it would be using the chip in its new Client Pro PCs. And late last month, Compaq Computer Corp said it would support S3’s graphics technology for mainstream and performance PCs, but did not specify a particular PC line in which the chips would be included. Both IBM and Compaq have used ATI exclusively for the past two years.
IBM said it would release more details of its new consumer PCs when they are launched later this year. S3 says it’s on track for, and predicting, a return to profitability in the second half of the year.
