nVidia is to acquire Taiwanese core logic chipset developer ULi Electronics in a $52 million cash deal.

The deal will bolster nVidia's ability to get its graphics and other chip technology into computer chipsets, which are taking on a bigger role inside computers. Chipsets normally act as traffic regulators for the flow of data between a microprocessor and other chips inside a computer, like memory and graphics. But graphics functions have been embedded in chipsets for years, a market nVidia and rival ATI have both worked to gain market share.

The deal will also enable nVidia to develop closer relationships with customers in Asia, the company said.

The acquisition is expected to be completed in the first quarter of nVidia's 2007 fiscal year, subject to regulatory approval.

ULi's president and chief executive officer, Alex Kuo, will join nVidia as a senior executive responsible for media and communications processor sales, marketing, and support functions in Asia.