Intel said to be pressuring VIA to exit CPU market
Just as VIA prepares to restructure itself in an attempt to keep up with the competition, The Inquirer says Intel is attempting to squeeze VIA out of the processor market altogether. Although not nearly as popular as Intel and AMD chips, VIA's C7 processors have something of a following in mobile and small form-factor PCs and embedded systems. Taiwanese industry sources quoted by The Inquirer claim Intel has attempted to strike a deal with VIA whereby, in exchange for retaining a license to produce Intel-compatible chipsets, VIA would agree to stop making x86 processors altogether.
Considering chipsets make up most of VIA's revenue, the firm might have to consider such an offer seriously, if it were on the table. VIA's current license to produce chipsets for Intel processors is only valid for four years, and VIA says that license will expire in March 2008.