Intel introduced its 854 platform for the consumer electronics application at the Intel Developer Forum (IDF) in Taiwan, held from Apr 11-12. Several makers have begun incorporating the solution into their products, with volume production currently getting under way, according to Glenda Dorchak, vice president of Digital Home Group and general manager of the Consumer Electronics Group (CEG) at Intel. Products using the Intel 854 chipset include set-top boxes (STBs) from Tatung and HDD (hard disk drive) DVD players from Toshiba, said Dorchak. Both products were showcased at IDF Taiwan. The 854 platform is built using an integrated graphics core offering support for up to 2GB DDR333 and the platform supports Celeron CPUs. The platform also features a 10/100 LAN controller and the chipset integrates six USB and two ultra ATA/IDE connectors. For shortening time-to-market, the platform supports various software encoding/decoding and Microsoft Windows CE 5.0.1 support. Dorchak stated the company will be able to push forward it agenda for digital home products within three years, by which time demand for consumer electronics products worldwide will have climbed. Intel spreads the word Photo: Allen Lin, DigiTimes.

With the recent introduction of its i915GME desktop motherboard for the Intel Pentium M processor, AOpen has shown that it is committed to developing the market for Pentium M desktop motherboards, especially in Japan. AOpen was the first to introduce a Pentium M desktop board, the i855GMEm-LFS, which hit the market in the fourth quarter of 2004. Now, with the i915GME, AOpen is the first to introduce a PCI Express (PCIe) enabled Pentium M desktop motherboard. The board has all the bell and whistles expected from a PCIe motherboard, including one PCIe x16 slot, one PCIe x1 slot, SATA 2 support and integrated DirectX9 graphics. In addition AOpen has tweaked the design so that the board can support DDR memory, even though the 915GM chipset only supports DDR2 when used in notebooks, according to sources at AOpen. Of course the big selling point of the desktop motherboard is its support for Pentium M CPUs. Mobile CPUs run a lot cooler than desktop CPUs, with AOpen stating that the power consumption of the Pentium M processor is only one fourth that of the Intel desktop LGA775 Pentium 4 processor. For vendors looking to design compact systems, a Pentium M board provides an ideal starting point, as thermal issues are much easier to avoid. AOpen has already shown that these boards can be used in small-form-factor (SFF) PCs and the company is planning even more compact designs, though the release of its MZ 855 SFF PC has been delayed until the end of April, according to the company. AOpen also seems to grasp the fact that, since this is a brand new market, much of the innovation will come from the market itself. So, the company has thrown a slew of features onto the i915GME motherboard, almost as a challenge to its customers to come up with something innovative. The i915GME features dual Gigabit PCI Express LAN and Intel high definition audio 7.1, while supporting DVI, YPbPr (for connecting to HDTVs), D-Sub, S-Video and a D-connector option for connecting to displays. The motherboard also has two standard PCI slots. However, users looking at Pentium M boards as possible building blocks for Windows-based Mac-mini types of products may have to pass on the i915GME, as it will have a street price of about US$300, according to sources at the company. Although AOpen has stated its desktop Pentium M motherboards are currently available globally, sources at the company noted that AOpen will focus its sales on Japan. Industry sources agreed that Japan will end up being the test market for Pentium M desktop systems. Intel has made more Pentium M CPUs available in the channel there, and users are willing to pay more for a system that meets their requirements, which in Japan tends to be a need for something compact and quiet. AOpen may be the right vendor for the Japan maker as well. Although the company stated it shipped about 100,000 XC Cube small-form-factor (SFF) PCs last year – compared to about 600,000 for Shuttle – it was the number one SFF barebones vendor in Japan. AOpen i915GMm-HFS Pentium M desktop motherboard Photo: Company

Shuttle anticipates that demand for BTX (Balanced Technology Extended) systems will not pick up until next year, while projecting that 5% of the 750,000 XPCs it expects to ship this year will be BTX systems. The company will roll out three new BTX XPCs this year, each of which will be built using the pico-BTX form factor, according to Ken Huang, company vice president of systems development unit. Huang indicated that Shuttle has no plans to introduce any XPCs built using the slightly larger micro-BTX form factor. Huang stated that demand for the systems will grow starting next year, as consumers still need to be educated about the Intel-developed standard and a greater supply of components need to be made available in the market. For most companies it is still relatively cheaper to produce products using ATX standards, as power supplies and heat dissipation modules for the BTX platform are still US$10-20 more expensive than similar products used on the ATX platform, Huang claimed. Shuttle’s perspective on BTX Source: company

Although forecasting no revenue growth for this year, Shuttle maintains that quitting the motherboard business has reduced margin pressure from its business and allow the company to enjoy increased profits, according to company product marketing vice president Jonathan Yi. However, Shuttle is currently feeling the short-term effects of not having motherboards contribute to its sales. Over the first two months of this year, the company’s revenues are down 40% on year, and revenues for 2005 should stay flat at about NT$7 billion. Yi indicated that the company shipped about one million motherboards last year, with the business contributing NT$2 billion to the company’s revenues, or about 30% of its total sales. However, Yi estimates that by removing itself from the highly competitive motherboard business, Shuttle will be able to focus on its successful small-form-factor (SFF) PC business and be able to maintain margins of over 15%. Shuttle was one of only five Taiwan-based motherboard vendor to record gross margins over 10% in the third quarter of last year, and only Asustek and DFI had margins over 15%. In addition, gross margins have been steadily declining for motherboard vendors over the past few years, except for companies that have managed to target niche markets, a source in the market stated.

Jetway Information has shifted its focus in the small-form-factor (SFF) PC segment away from barebone system design toward production of SFF motherboards for its OEM clients, according to sources at the company. However, Jetway will continue to market its current line of MiniQ SFF systems, the sources added. Although the company has won several industry awards for its SFF designs, Jetway believes its core competency is in production. Therefore, the company will look to work with OEM clients that specialize in chassis design, while Jetway concentrates on motherboard manufacturing. Most of Jetway’s current OEM partners are located in Korean and Japan. The company is probably most well known in the SFF market for its MagicTwin series, which are systems that allow two users to operate the same PC concurrently, using separate keyboards, mice and monitors. However, at the recent CeBIT show in Germany, Jetway did not even list barebone PCs as one of its products in the show’s catalogue. The sources stated that the motherboard company has been developing more products, such as graphics cards, LCD monitors and MP3 players, that take advantage of its strength at board-level production. According to the company’s website, Jetway has a production facility located in Dongguan, Guangdong Province (China), which has a monthly capacity of 300,000 motherboards and 50,000 systems. So far, Jetway’s strategy seems to be paying off, as the company revenues of NT$4.75 billion last year beat out its financial projection by 10%, and represented a 31% increased over 2003. The company also shipped 1.1 million motherboards and 639,000 LCD monitors last year, while having monthly shipments of 150,000-160,000 graphics cards. In addition, Jetway is one of few Taiwan motherboard companies to be able to continue its growth into 2005, as its sales this year are up 5% over last year.

Small-form-factor (SFF) PCs and servers can now adopt multi-processing with the unveiling of VIA Technologies’ EPIA DP-310 motherboard at CeBIT 2005. The Mini-ITX (17x17cm) board is powered by two 1GHz Eden-N processors coupled with the company’s CN400 chipset featuring DDR400 memory support, integrated 128-bit UniChrome Pro graphics and hardware acceleration for MPEG-2 and MPEG-4. Peripheral features of the board include one Gigabit Ethernet port, two Fast Ethernet (10/100Mbps) ports, one PCI slot, one Mini-PCI Type IIIA connector, one Ultra ATA/133 connector, two Serial ATA channels (with RAID support), up to four USB ports and VIA’s Vinyl Six-TRAC audio codec. “In bringing dual-processing to the Mini-ITX platform, VIA has raised the bar yet again for small form factor innovation on the x86 platform,” stated Richard Brown, associate vice president of marketing at VIA. According to VIA, the new motherboard has been released to target “corporate system integrators, embedded application developers, enthusiasts, and other small-form-factor system builders.” The company mentioned so-called “appliance servers” as one of the possible application areas for the EPIA DP-310 and other boards with similar features. VIA defines these servers as “network-enabled, service-dedicated devices designed to deliver a single service or function across the corporation or a workgroup.” Following this definition, a typical appliance server might manage functions such as web caching, security operations (for example firewall, anti-virus, VPN or encryption), personal storage and backup or Internet access. A few lesser-known companies, such as Bleu Jour from France, IPC2U from Germany and Mirra from the US, were named at CeBIT as system integrators supporting the EPIA DP-310. According to VIA’s estimates, the board will begin mass production at the beginning of May. Finished products are expected to be ready for market in the second half of this year. VIA’s EPIA DP-310 board is powered by two 1GHz Eden-N processors The two 1GHz Eden-N processors share a single cooler. Photo: Vyacheslav Sobolev, DigiTimes.com, March 2005.

Micro-Star International (MSI) recently announced its latest small-form-factor (SFF) PC, the Mega PC 865 Pro, a consumer oriented multimedia SFF PC. MSI is also looking to expand its own-brand business by extending the Mega brand to new products such as notebooks, MP3 players and portable video players. The Mega PC 865 Pro will be targeted to mainstream users and aims to take advantage of the convergence of PC and consumer electronics devices. Based on the Intel 865G chipset, the system features an instant-on DVD player, as well as support for FM radio and TV. MSI has also added new audio features to the Mega PC 865 Pro, as well as equipping it with a wireless 802.11g card. The company introduced its first Mega PC SFF PC last year and the product line represents MSI’s goal to establish its own-brand in the market, as well as building up its barebones business. This year, the company extended its barebones offering from SFF PC to more traditional barebones products, including ATX and micro-ATX units. Although a market leader in the motherboard market, MSI did not produce barebones units for the mainstream market until this year, and will now compete against Asustek Computer, Gigabyte Technology and First International Computer (FIC). In past years, MSI only produced barebones units for the vertical market, and the company still ships about 100,000 units per year to that segment. At CeBIT this year, MSI is also offering various new own-brand products, including its Mega View 567 portable MPEG player, the Mega Stick 528 MP3 player, and the Mega Book M525, a Sonoma-platform notebook. Mega PC 865 PRO Photo: Company

Shuttle continues to fill out its lineup of K8 PCI Express (PCIe) small-form-factor (SFF) PCs with today’s introduction of the XPC ST20G5, based on the ATI Technologies (ATI) Radeon Xpress 200 chipset. The product will complement Shuttle’s recently introduced K8 PCIe XPC SN25P, which is based on the Nvidia nForce4 chip. The new XPC ST20G5 is the first SFF PC to be based on ATI’s Xpress 200 chipset, whose integrated graphics are based on the Radeon X300 core. The integrated part includes support for DirectX9, vertex shader 2.0 and pixel shader 2.0, and will be partnered with ULi’s 1573 southbridge in the XPC ST20G5. A key feature of the ATI Xpress 200 chip is support for multiple displays, and Shuttle has included both DVI and VGA outputs with the system, so that two monitors can be used. The XPC ST20G5 also includes one PCIe x16 slot, and if a PCIe graphics card is added, a third display can also be used. According to a representative from Shuttle, the XPC ST20G5 will be targeted to the mainstream, and will be priced lower than the nForce4-based XPC SN25P, which is targeted toward gamers. Although the SN25P just began shipping, another Shuttle representative stated that the system is selling very well, especially in Japan. The XPC ST20G5 is expected to begin shipping in April and will be available as a system or barebones unit from Shuttle’s offices in the US, Europe and Taiwan. Shuttle XPC ST20G5 can support up to three monitors Photo: Company Shuttle XPC ST20G5, G Chassis Photo: Company

The first Nvidia nForce4-based PCI Express (PCIe) small-form-factor (SFF) PC hit the market today, when Shuttle launched its XPC SN25P. Shuttle also announced the launch of a home-theater XPC, the SB83G5C, which is particularly targeted for Asian markets. The XPC SN25P features a Socket 939 motherboard supporting AMD Athlon 64 CPUs, a 1GHz HyperTransport system bus, one PCIe x16 slot and one PCIe x1 slot, as well as support and physical space for three hard drives (one IDE and two SATA drives). Built using an Nvidia nForce MCP (media and communication processor), the system also supports an integrated hardware firewall, SATA I and integrated RAID. In addition, the SN25P is housed in Shuttle’s P chassis, which features a 350W power supply yet still only produces noise at about 31dB when the system is at rest, the company stated. Shuttle is also bundling Trend Micro PC-cillin software with the SN25P. The XPC SN25P will begin shipping in volume next week. The system will be available immediately in Taiwan and about one week later in other markets. The company plans to first ship the SN25P as a barebone unit, with sales of complete systems following later. Also today, Shuttle launched its XPC SB83G5C home-theater XPC. The Intel 915G based system features an integrated TV tuner and can be powered by remote control. Software is also included with the system for recording television programs, as well as organizing and playing audio, video and image files. The system will be targeted for Asian markets in particular and will begin to be available in the middle of March. According to the company, Shuttle shipped 48,000-49,000 XPCs in January, with PCIe systems accounting for about 30% of the shipments, up from 20% last year. Shuttle is also the only SFF PC company to launch a BTX SFF PC, and BTX sales accounted for about 5% of the company’s January shipments, with Japan being the market most receptive to the product. Shuttle’s XPC SN25P Photo: Company Shuttle XPC SN25P, front view Photo: Company XPC SB83G5C home-theater system, from Shuttle Photo: Company

On the heels of launching the EY855-II XC Cube, its first Intel Pentium M-based small-form-factor (SFF) PC, AOpen is now preparing for the March launch of its smallest XC Cube SFF PC to date, the MZ 855, according to sources at the company. The Intel 855GME-based system, which the company has dubbed the Cube Mini, will only be 106mm tall and will support Socket 479 Pentium M processors, a 400MHz FSB and up to 2GB of DDR333 memory. Although running a notebook CPU, the MZ 855 will still support desktop hard drives, and features two front-panel USB ports. By using a notebook processor in the SFF PC, AOpen has been able to design a highly compact system – even for SFF standards – that also runs quietly, at only 27dB when fully loaded, the sources explained. However, with a 150W power supply and support for graphics cards only up to 185mm in length, the MZ 855 is not targeted for all enthusiasts, but rather to those who value space-saving above all else, the sources pointed out. Although AOpen plans a global release for the MZ855, the first target market will be Japan, the sources added. The release of the MZ 855 SFF PC demonstrates AOpen’s dedication to pushing notebook CPU solutions on the desktop. The company claims that last November it was the first company to release a desktop motherboard based on the Socket 479 Intel Pentium M CPU, and this month stated it was the first company to release an SFF PC based on the i855GME. By the middle of the second quarter, the company will also release a version of the Cube Mini based on the Intel 915GM chipset, the sources stated. One reason vendors may begin offering more notebook CPU-based desktop solutions this year is the increased availability of notebook CPUs in the channel, the sources noted. Intel has increased its support for the clone notebook market and is looking drive up the share of clone notebooks in the global notebook market to 30-35% in the next two years, other sources explained. The chip giant has also introduced its Common Building Block (CBB) program to help simplify the integration and distribution of notebook computers, which should mean more notebook CPUs available in the channel. AOpen Cube Mini Photo: Company