XGI Gets More Funds from Mother Company
Silicon Integrated Systems, a Taiwanese developer of core-logic products, has acquired additional share in XGI Technology, a company that develops graphics processors and was spun-off from SiS in 2003.
A report from DigiTimes claims that Silicon Integrated Systems had invested an additional $13.2 million in XGI Technology, boosting its stake in the graphics chip affiliate from 30% to 36.91%. The capital was used to purchase 37.5 million shares from XGI’s new share rights issue. The company issued a total of 67.5 million shares, increasing XGI’s registered capital from $45.8 million to $64.6 million.
XGI did not reveal the investors for the remaining 30 million shares, which were priced at a premium of NT$12 per unit, compared to a net worth of NT$6.5.
XGI Technology faced numerous challenges with its graphics business, as its dual-chip graphics cards did not meet expectations in terms of performance, while single-chip products only managed to act competitively in the entry-level market. Additionally, transition to PCI Express bus for XGI will stretch, as the company will only be able to offer its PEG x16 graphics chip in early 2005.
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