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Intel aims to regain lost chipset business.

A significant constraint in its chipset supply recently forced Intel to use third party integrated graphics chipsets, including millions of units from ATI, for Intel branded motherboards. The company today said that the current shortage is temporary and that it will use Intel-only chipsets as soon as possible and try to regain lost market share in this segment. Stephen Smith, vice president in Intel"s digital enterprise group, attributed the constraint to the ongoing transition from 200 to 300 mm wafers as well as the switch from 90 nm to 65 nm devices. In the near future, the firm will ramp its chipset production in multiple plants to 300 mm wafers in existing 90 nm fabs once the manufacturing of 65 nm processors is in full swing. "We would like win back market share as soon as we regain capacity," Smith said. According to Smith, the shortage of Intel chipsets will continue throughout the first half of next year.

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