AMD Debuts PC-to-TV Chipset by George Jugaru

If you like this article go daily for more hot and interesting news here: http://www.xomba.com/xombyte/buggsbunny Advanced Micro Devices introduced the first chipsets Wednesday to include graphics technology from its recently acquired ATI division, allowing the semiconductor maker to add extra features for connecting PCs directly to large-screen TVs and monitors, and get a leg up on rival Intel.
The AMD 690 series chipset unites AMD's central processor unit with the visual technology of the ATI Radeon X1250 graphics processor unit. It's designed to enhance Windows Vista graphics features such as the Aero and Flip 3D interfaces for seeing through menus and selecting windows.
Sunnyvale, California-based AMD has been facing off with traditional rival Intel for increased business as Vista rolls out across consumer and corporate desktops. One of the main features touted for Vista is its media center abilities for connecting to TVs and allowing users to better manage video, photo, and music files.
AMD's $5.4-billion acquisition last July of graphics technology specialist ATI Technologies gives the company extra bragging rights in the graphics space over Intel (see AMD Corrals ATI for $5.4B). Intel and the computer makers who use its chips still must rely on outside companies like Nvidia to give their PCs extra graphics-processing oomph.
The AMD 690 chip includes support for high-definition graphics standards such as HDMI (high definition multimedia interface) as well as HDCP (high-bandwidth digital content protection) to protect against unauthorized copying of content. It also boasts an output to DVI (digital visual interface) for a direct connection to today's modern digital TV sets.
"What stands out is the inclusion of built-in DVI and HDMI," said Shane Rau, a PC chip analyst with the research firm IDC. "This is a strong bow to the consumer market and the prospect of attaching digital video devices directly to the PC without requiring any intermediate silicon or boxes that would translate signals between the PC and a television."
After the stock market slumped on Tuesday, shares of AMD rose $0.12 to $15.20 in recent trading Wednesday, while Intel shares edged up $0.04 to $20.07.
Ready for Home Theaters
The chips are aimed at an emerging market for home theater-oriented computer systems. "This is a growth market," said Dean McCarron, principal analyst at Mercury Research. "One of the things that makes it unique is the video interconnect standards. It would be appealing to someone building high-definition displays."
AMD also has lined up an expanded lineup of motherboard makers to help push its product more directly to customers, including ASUS, Foxconn Technology Group, and Gigabyte United.
"They have taken a step forward because of the breadth of motherboard makers," said Mr. Rau. "Having the support of these motherboard vendors will help them penetrate the channel where motherboards are sold directly to end users and to system builders."
Phil Eisler, corporate vice president and general manager of AMD's chip division, and an 11-year ATI veteran, said system manufacturers will also begin including the chipsets in their PCs in a month or two. But AMD has not yet announced any specific computer makers.
Mr. Eisler sees the chipsets being used for connecting to big-screen TVs in the home and large monitors in the office. The chipsets support high-definition DVDs in both the HD-DVD and Blu-ray formats. They can also work well for casual gaming but are not appropriate for high-performance gaming.
Bringing Graphics on Board
Eventually AMD plans to put the ATI graphics on board with the processors themselves. "It's the first phase on the way to our fusion integration," said Mr. Eisler.
Mr. Rau believes the 690 technology could soon marry up with AMD processors on the same chip. "It's not a technological barrier, it's a marketing barrier," he said. The increased integration could help AMD gain extra market share against rival Intel.
IDC found that in the fourth quarter of 2006, AMD/ATI had 10 percent of the chipset market, putting them in about fourth place behind Intel, Nvidia, and slightly behind Via, a Taiwanese chipset maker. AMD has about 25 percent of the processor market compared to Intel in any given quarter.