The rumored iPod delays dampens NAND flash pricing and may have sparked a price war between Hynix and Samsung. Analysts expect the Blu-Ray and HD DVD markets to exceed $28 billion by 2010. ATi will release the 65 nanometer RS700 chipset in 2007.

The new RS700, which is designed for the Intel platform, will support DirectX 10, Shader Model 4.0 and unified shader mode. ATI will have a leg up in the advanced integrated chipset market as rival Nvidia has not yet announced any product roadmap regarding DirectX 10-compliant or 65nm-made chipsets, the sources commented.