Taiwanese chip maker Via Technologies has emerged as the leading suitor to pick up the pieces of S3's graphics operations.
Previously, S3 confirmed that it was in discussions with several companies regarding the sale of its graphics business, but declined to comment further. AMD had been linked to the company, but market observers in Silicon Valley believe that Via is the frontrunner because it already has a joint venture with S3 which has been going since the end of last year.
A S3 spokesman refused to confirm or deny the link-up between Via and S3, but said a takeover would be the "logical step for the company". He confirmed that both Vidia and Via have been mentioned, but said S3 may even spin off the division into a separate company.
Via's profit grew 218 per cent for its first quarter ending 31 March, compared with the same period last year. Via has also bought a number of companies during the past 18 months.
In the meantime, Jerry Sanders, chief executive at AMD, said last week that the company expects to report record sales totalling more than $1bn for its first quarter.
Strong sales growth in all product categories accounted for the revenue growth, said Sanders. Flash memory products and PC processors, particularly AMD's Athlon chip, broke unit and revenue records. The company also reached its goal of selling 1.2 million Athlon processors in the first quarter, said Sanders.
Intel is expected to report its first-quarter earnings on 18 April.
This story has been republished from 12 April 2000 issue of Computer Reseller News
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