VIA Technologies is said to have decided to terminate the operations of its VIA Platform Solutions Division (VPSD) and will transfer all the division’s products and assets to First International Computer (FIC) now that it has settled its patent infringement lawsuits with Intel, according to sources.

VIA denied the rumor that it will close the division, but confirmed that it is indeed planning to hand over its P4 motherboard business to another company, on which it has not decided yet, and let the VPSD concentrate on developing mini-ITX EPIA boards.

The rumored closure of the business unit, however, was not a surprise to the industry. Established on October 15, 2001, the VPSD was seen as a division VIA used to promote its P4 chipset sales amid its legal battle against Intel. With its products also aimed at the own-brand sector, the VPSD was regarded as a competitor against VIA’s motherboard clients. After VIA settled its lawsuits with Intel in April, it also signed a 10-year cross-licensing agreement with the chip giant. It seems unnecessary for VIA to continue launching P4 motherboards through the VPSD, industry observers said.

Still, VIA claims that it has no plans to shut down the VPSD, but it will shift the division’s focus to EPIA motherboards, some of which are sold with VIA’s C3 processors as a system platform package. Since its establishment, the VPSD has sold over 100,000 P4-based and 50,000-60,000 EPIA motherboards on average every month, VIA said.

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Source: Digitimes