Nvidia has reached an agreement to buy chipset maker ULi for USD 52 million. The deal is seen as a move by the company to expand its nForce lineup and to weaken ATI’s presence in the core-logic market. Recent numbers from Mercury Research showed Nvidia with an 8% share in the current quarter. ATI, which interestingly has been using ULi south bridges along its Radeon Xpress 200 chipsets, is expected to end the year with 11%. ULi’s share is only 1%. The acquisition, subject to regulators and shareholders approval, is expected to be completed by May 2006.

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