Taiwan Chipset Maker VIA Aims at Intel

The face of competition is a changing one for Intel Corp. Its traditional rival, Advanced Micro Devices, has gone from the pain of red ink to the smiles that accompany newfound profitability. More interesting is the challenge at the low end, where ambitious Taiwanese chipset vendor VIA Technologies aims to take on the world’s largest chip maker.

VIA has its roots as a maker of chipsets, the semiconductors that connect microprocessors to other components. Under the leadership of former Intel engineer Wen Chi Chen, VIA moved into the CPU business last year, acquiring the money-losing Cyrix processor units of National Semiconductor and the design team behind the ultra-low-end WinChip processor.

Although it was only this week that VIA announced its first new processor, the Cyrix III, VIA and Intel have been doing battle in other areas. The two firms had a short-lived deal allowing VIA to make licensed chipsets for Intel processors. But last year Intel said VIA had violated the deal’s terms, canceled the pact and filed a slew of legal actions in various international venues.

While Intel has painted VIA as unscrupulous, Chen refuses to return the vitriol. Chen, a born-again Christian in his early 40s, has stressed the role that his faith plays in the company.

The company’s slogan “VIA--We Connect” refers to more than just connecting bits and bytes, he said at a news conference last week.

“We also want to make sure we connect with God,” Chen said.

Chen expressed hope that the two firms may yet become partners.

“We don’t think we’re competing,” he said. “We think we’re working together to support the industry. Intel may not think this way.”

To be sure, Intel views VIA as a rival, a point made explicit by Intel Chairman Andy Grove at the company’s recent developer forum in Palm Springs.

Asked how his company plans to compete with Intel, Chen paraphrased the Bible: “In the Book of Joshua, God tells Joshua, ‘Be strong and courageous,’ ” Chen said. “ ‘Don’t be terrified . . . because your God will be with you.’ ”

Chen’s Christian faith is evident throughout the business. He has replaced the code names of chips under development with the monikers of Biblical figures. Until it was branded the Cyrix III this week, the chip once called “Gobi” had been renamed Joshua.

VIA’s first integrated chip, aimed at Intel’s forthcoming Timna processor, is code-named Matthew. That chip should debut sometime early next year, Chen said, to be followed by Mark, Luke and so on.

And during the past Christmas season, VIA sponsored the Worldpray.com Web site where people could send their prayers.

By contrast, Intel’s traditional competition has come from the more earthly centered Jerry Sanders, AMD’s chairman and chief executive, best known for his stylish suits, Rolls-Royces and palatial estates.

While their approaches seem quite different, the fast-lane Sanders and the reverent Chen have worked closely together. Although both have products aimed at the low end of the PC market, AMD is looking to move up and has relied heavily on VIA to create the supporting infrastructure.

One advantage VIA has is that PC customers do not have to commit to VIA long-term because the Cyrix III can easily be substituted for an Intel Celeron when it suits the computer maker.

“I think the fact that they fit into the Celeron’s Socket 370 is a phenomenal advantage for them,” said Nathan Brookwood, a Saratoga, Calif.-based industry analyst for Insight 64. “It means that [manufacturing] customers can go to this part opportunistically.”

An open question is how computer makers and consumers take to VIA’s very public Christian involvement.

“I don’t know,” says Chen, “but . . . being honest with what I believe, we tell the whole world what we think.”

Chen said he realizes that there are many different opinions about religion, but he said he has benefited a lot personally through his Christianity. “I definitely want to share that joy,” he said.

Chen said VIA would continue efforts such as the prayer Web site. “We’re actually going to do more of those things,” Chen said.