ATI Hooks up with Acer-DMS

As we mentioned last week, ATI is in the process of changing its marketing and production strategies . The company is now actively seeking board vendors to use its chips in their products, as opposed to their long-standing strategy of going it alone to design and produce boards. Today, ATI announced the first of these deals with Acer-DMS. Acer-DMS will now have access to ATI's full range of graphics products and will soon be putting out its own ATI-powered boards. ATI says it will continue to provide chips and boards to OEMs in all the markets it currently serves. Acer-DMS believes there is "considerable pent-up demand" for ATI graphics, which could be translated to mean that ATI's got the chips and drivers but simply can't get enough boards out the door. For a really complete overview of ATI's competitive position and challenges, check out this Tom's Hardware Guide article. Only time will tell whether ATI will successfully ramp up its operations to compete with the likes of Nvidia.