"Silicon Integrated Systems (SiS) has responded to market rumors that it is planning to phase out of the PC chipset business to focus on digital TV and handheld device chips, saying that the company will continue shipping its PC chipsets products based on client demand.

With Intel and AMD planning to change their CPU architecture to include more northbridge functions on the CPU, SiS will turn its focus to the development of southbridges, said the company.

The falling worldwide economy and Intel's increasing shipments of entry-level 945GC chipsets to motherboard makers, has prompted SiS to turn its current focus to notebook chipsets. The company is still providing chipsets to around 20 notebook makers including Micro-Star International (MSI) for their entry-level notebook products, according to SiS.

SiS said it will continues to ship products based on client demand with availability extending until 2011.

However, some motherboard and notebook makers still believe SiS has lost too much market share and will step out of the chipset business."