Called S3 Graphics, Inc, the joint venture is focused on the design and development of high-performance graphics cores for use in discrete graphics subsystems and integrated graphics and core logic chip sets for the volume OEM desktop and notebook PC markets.

The new S3 Graphics, Inc joint venture provides us with a ideal vehicle for becoming the market leader in integrated chipsets for desktop PCs and notebooks, commented Wenchi Chen, president and CEO of VIA.

Building on the best selling Savage MX and IX family of discrete mobile graphics and the recently launched PM133 and KM133 integrated graphics and core logic chip sets, I believe that the joint venture can outperform the rest of the industry in bringing winning integrated solutions to market.

Having finalized all the outstanding regulatory and business issues, we are pleased to have successfully completed the transaction with VIA Technologies, said Ken Potashner, president and CEO of SONICblue.

This now enables us to fully focus our attention and resources on our ongoing digital media strategy having already achieved and sustained market leadership with our Rio products and the launch of our frontpath business unit.