Hot off the press...Intel antitrust with Chips...
Wednesday August 27 2:23 PM EDT
FTC looking into Intel bid for Chips & Tech
SANTA CLARA, Calif., Aug 27 (Reuter) - The Federal Trade Commission has asked for more information about Intel
Corp.'s bid to buy Chips & Technologies Inc., suggesting antitrust regulators are taking a closer look at Intel's expansion into
graphics computer chips.
Intel and Chips & Technologies said late Tuesday it would comply with regulators' requests for more information. Intel
spokesman Tom Waldrop said such requests are ``not uncommon'' in the industry.
Still, with the proposed $420 million purchase, Intel would be acquiring the biggest maker of graphics chips for laptop
computers. Intel, one of the world's leading chip makers, also would gain expertise in making graphics accelerators, which are
key to improving the realism of graphics and video on personal computers.
``As Intel solidifies its position in microprocessors and as the industry matures, Intel has to find a way of garnering the growth
that Wall Street has come to expect,'' said Mike Feibus, principal analyst at market researcher Mercury Research Inc.
By adding more capabilities to its chips, Intel could command more money from PC makers for each machine sold, Feibus
said. However, the acquisition could give Intel an unfair competitive advantage over other graphics component suppliers, such
as S3 Inc. (SIII), ATI Technologies Inc. (ATY.TO.) and Advanced Micro Devices Inc. (AMD), he said. |
