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[RegHW] Nvidia CEO says 'no' to VIA acquisition

post #1 of 8
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http://www.reghardware.co.uk/2008/05/12/nvidia_and_via/

Quote:
Nvidia doesn't want to buy VIA, the graphics chip maker's CEO has claimed. Nvidia is completely focused on being a "visual computing technology company", he said. Well, for the moment, at any rate...

Speaking to CNet, Nvidia CEO Jen-Hsun Huang suggested neither Nvidia nor VIA are interested in acquiring each other's business.

That the two might be considering such an option has been doing the rumour-mill rounds of late, primarily because pundits feel Nvidia desperately needs to get into the processor business if it's to remain relevant.

AMD is busily attempting to integrate graphics processing cores into future 'Fusion' CPUs. Intel is taking a similar approach, having said its upcoming 'Nehalem' processor family will include models that incorporate a graphics engine.

Both moves are fuelled by the shift of functionality off ancillary northbridge chips and onto the processor. First it was the memory controller, and now we're looking at integrated graphics coming on board too.

If Nvidia isn't to lose out, it has to follow suit, the argument runs. And since buying a CPU maker is easier than kick-starting development on its own, the pundits look around to see who Nvidia could buy and settle upon VIA.

Huang's point is that there's plenty yet to Nvidia to do in the graphics arena before it needs to worry about the longevity of its core business. Fusion and Nehalem are a threat to Nvidia's chipset sales, not its discrete GPU lines. Yes, Intel has its eye on that too, with its 'Larrabee' chip, but it's very hard to imagine Nvidia not working on a ray-tracing chip of its own, if only as an insurance policy.

And it's easy to look at Nvidia and think only of PC graphics and chipsets, the two areas where the company is most vulnerable from the Fusion and Nehalem initiatives, but its efforts extend far beyond that into industrial and mobile graphics.

There, Huang said, Nvidia works successfully with other chip makers to allow CPUs and GPUs to co-operate efficiently. The upshot: Nvidia doesn't need an in-house CPU design and production team.

Since VIA's share of the x86 processor market is way smaller than AMD's, let alone Intel's, it's questionable how much real value Nvidia would get out of it. VIA has a decent CPU business, but it's hard to see it mounting a serious challenge to its rivals.

Combining Nvidia GPU technology and VIA CPU architectures isn't going to change that, leaving such a plan as little more than a survival strategy. Nvidia's not yet in a position where it desperately needs one of those.
So not yet..... at least. Losing chipset sales still has to be a hit on the company's revenues so I can't imagine them sitting around ready to give up the chipset division...
    
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post #2 of 8
heres to hoping the onboard graphics chips can be used as physics processors or coprocessors of some type to enhance CPU calculations, because I will be sticking with regular graphics cards, and having that extra boost might be a nice advantage
    
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post #3 of 8
Quote:
Originally Posted by DJZeratul View Post
heres to hoping the onboard graphics chips can be used as physics processors or coprocessors of some type to enhance CPU calculations, because I will be sticking with regular graphics cards, and having that extra boost might be a nice advantage
Thats actually a good idea, if it had it's own RAM the onboard GPU could be used for physics processing and used well. (Theoretically.)
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post #4 of 8
Well nVidia is in a hard position.


Their Mainboard Chipsets...
... aren't known as the super best, some even say only SLI is a reason for NV Chipset.
With Nehalem they have to design a Chipset for multiple Sockets with way less human resources than intel.
Not to mention the license fees/conditions (intel is in a good position to get SLI therefore).

PhysX...
... isn't nearly reaching the potential it could.
As long as NV don't release a final Geforce PhysX (over CUDA) Driver, they wont earn Money out of it.
Well Intel seem to do nothing with Havok, atm
But if this ends in a hard battle for main Physics SDK, NV has to open PhysX to others like ATI (-> rumors already been done) and lose a bit of the cake.

Cell Phone...
...chips aren't need that way NV tries to make us believe.
Mobile Phone Makers don't see Mobile Gaming as important and include rather fast ARM CPUs than MGPUs in their devices (what seems right for todays PPC and Smartphone users).
The market is still in development - only a wide hardware base would make it interesting for Software developers to use special Hardware like MGPUs.
NV has to invest a lot to get there.

Consoles...
...market seems to be the most future proof for NV.
They have a good share of it.
And the time till next Generation is long enough to create another great Chip besides the daily business.
On the other Hand the revenue is small for this Chips.

Workstation, Supercomputers...
...well NV isn't getting much money out of this.
But they also don't need to invest much into it.
All Solutions are based on their consumer GPU Chips.
I don't know where the market goes, but it is seems NV can only get profit here (little or big).
But this also linked to their Discrete GPUs market and can fall with it.

Discrete GPUs...
...is their core segment and it is really running great, atm.
But this is a market that can turn around 180° every month.
ATI is still very active and giving NV no time to sleep.
Only one bad Chip Design and they can lose the market leadership (see ATI HD2900XT).
If the GT200 really is 'only' a G92 refresh I wonder what they have done the last 2 years.
Also Intel is going to enter this segment.
Even when they don't rule it first, they create another big risk.


Even they show great trading results, investors are still careful.
NVidia are in a good position now, but their future is not so save.



*****
Please don't start me calling (anti NV) fanboy - just the situation atm.
All segments could went well but they are all very risky markets.
*****
Edited by MESeidel - 5/12/08 at 4:18pm
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post #5 of 8
Latey VIA has been making up a lot of ground they lost in the past years. The C7 CPU they have is surprisingly efficient, and the 'Isaiah' CPU coming up soon is supposed to be even better. Chipset-wise they are still behind, so to me nVidia buying VIA would only make sense if they wanted to move into the x86 market.
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post #6 of 8
Quote:
Nvidia doesn't want to buy VIA, the graphics chip maker's CEO has claimed. Nvidia is completely focused on being a "visual computing technology company", he said.
So why the tough words at Intel?
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post #7 of 8
Lol who was it that made that joke about VIA in the last thread of nVidia's wild claims?
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post #8 of 8
silly move. especially if G92 turns out to be a flop, and despite their dominace in the market for the past 18+ months, it CAN happen. i think they do need an X86 licence, else they're mince meat later on...

oh, nice breakdown, mesiedel
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