XGI maps out strategy

No one ever said that the consumer video graphics market was banal. Extreme Graphics Inovation (XGI) is, according to president Chris Lin, moving quickly to establish itself in the graphics chip market. The company aims to break even in the shortest possible time and become a very competitive, highly profitable graphics chip designer within three years. Saying that its strengths are in R&D and cost structure, XGI hopes to use a “high-profit, strong-competitive-strength strategy” and not engage in a price war. XGI was spun off from SiS in June, and acquired the notebook graphics unit of established player Trident – allowing XGI to enjoy a $US3 million revenue in July. The Trident acquisition also gave XGI a boost in attracting talent for its research and sales and marketing teams. XGI plans to maintain Trident’s product lines and customer base and will release a series of low-end, medium-range and high-end graphics chips by year-end, including a new generation of chips in September (rumored to be the DX9 capable Xabre2 series). XGI has signed distribution agreements with World Peace Industrial (WPI), Fullerton Technologies and Siltrontech Electronics, which are among the largest IT supply side distributors in Asia.