Basic Explanations
The chipset might be called the basic element on a system board. It allows your PC to deal with the several components installed in it i.e. harddisks, other drives, expansion cards (VGA, Sound e.a.) and all the peripheric devices. Without that chipset you would – metaphorically spoken- have a well-trained body with a strong heart (the CPU) and worked-out muscles (the RAM), but you wouldn’t have the brain functions to coordinate everything you would be capable of doing. The part of the brain being occupied with such heavy stuff is the chipset. It coordinates the connections between devices, operations and orders and directs ‘movements’ where they ought to be directed.
The chipset is responsible for the abilities of the different buses so as PCI, AGP, IDE, serial, parallel and USB. Basicly, the architecture of such chipsets is very similar. They consist mostly of two elements, square-shaped chips called the Northbridge and the Southbridge. On the diagramm below you can easily find out what the two bridges are responsible for. As an example I choose the very popular Intel 815xx chipset that you can find on many modern socket 370-boards for Intel Pentium FCPGA processors.
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The popular Intel 815xx chipset exists in four different combinations, being composed of one from two chips each. While the ICHs differ in their DMA support (66 or 100) the MCH 82815 provides integrated VGA. For further informations consult the chipset comparison charts:

ALi Chipsets

AMD Chipsets

Intel Chipsets

SiS Chipsets

VIA Chipsets

Intel changed the traditional working-way of the chipsets a little, so they don't call the elements 'Northbridge' and 'Southbridge' anymore. Instead of these terms they call them MCH and ICH - 'Memory Controller Hub' and 'I/O Controller Hub' whereby the MCH corresponds to the Northbridge and the ICH to the Southbridge. Latest chipsets by Intel contain some more elements (hubs) responsible for additional features. But in fact, the central architecture has always remained the same... ;-)
The chipset market is dominated by four manufacturers: ALi (Acer Laboratories), Intel, SiS and VIA. AMD also produces chipsets, but they are only suitable to mainboards for their own Athlon and Duron CPUs. On the other hand it must be clearly said that Intel doesn't build chipsets for its competitor's (and rival's) processors, too ;-) ALi, SiS and VIA manufacture chipsets for both universes, and from time to time they can use one element (Southbridge) on both rails. And last but not least: Don't be astonished whenever you find (on official websites of board manufacturers!) chipset combinations that don't appear officially. From time to time, webmasters can't differ '686B' from '696B', and the reason of all evil is simply a mistake. On the other hand, some board manufacturers seem to apply their 'own' combinations of North and South. If such 'exotic mixtures' are provided by the chipset manufacturers yet, is still a riddle to me.
SiS offers to us a speciality, the 'Single Chip-architecture'. This highly integrated solution in fact is nothing else but a North- and a Southbridge under one roof. Specially for low-cost systems this might be a good solution: It allows a very small board layout and makes additional components needless... if you don't expect too much from them ;-)
 

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