Intel Investors - An Update from Intel's Israel operations - seeking new Telecommunications acquisitions, Fab 18 is up and running in production (0.18 micron), Intel introduces a new Web Caching Appliance developed with INKTOMI, etc.
Paul
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10/26 2:01P (DJ) Intel Seeks Ties, Purchases Of Israeli-Based Communications Firms Story
1012 (INTC-D, INTC, I/SEM, I/TEL, N/CAC, N/DJN, N/DJWI, N/STK...) TEL AVIV -(Dow Jones)- Semiconductor giant Intel Corp., which agreed earlier this month to acquire Israel's DSP Communications Inc., is also looking into purchasing Israeli-based Internet communication companies, a company official said Tuesday.
"Intel is always considering investments and acquisitions of Israeli companies," said Dov Fruhman, chief executive officer of Intel Israel. "It's an ongoing process." Fruhman said Intel (INTC) is most interested in companies developing products for Internet communications. Intel has said the DSP Communications purchase is part of its move to become the leading building-block supplier to the Internet.
As it searches for new growth, Intel is expanding beyond microprocessors into networking gear, server and communication appliances, and Internet services. Each is designed to capitalize on the growth of the Internet. Intel agreed to acquire DSP (DSP) for $1.6 billion in cash. The proposed acquisition of DSP Communications is the biggest buyout of an Israeli company. DSP, which has offices in U.S., Japan, Israel and Canada, specializes in so-called digital signal processing, or DSP, chip sets for wireless phones and other devices. The company provides expertise in digital cellular technologies for personal digital cellular, or PDC; time division multiple access, or TDMA; code division multiple access, or CDMA, and third-generation wireless phone standards. DSP had 1998 net income of $29.4 million, on $131.1 million in revenue.
Meanwhile, Intel Israel officials said that the company's newest microchip plant in the southern town of Kiryat Gat should reach full production capacity by late 2000. The Israeli plant opened in June. "We are meeting production capacity targets every month," said Israeli plant director Alex Kornhauser. "Our plan is that we will reach full production capacity by the third quarter of 2000." At full capacity, Intel expects to export $1 billion in computer chips from Israel annually. Sales from the Israeli plant may total $800 million for all of 2000, Kornhauser said.
Separately, Intel on Tuesday unveiled several new products aimed at Internet service providers, or ISPs, including a Web-caching appliance and a multifunction network appliance. Intel said the Web-caching appliance, co-developed with Inktomi Corp. (INKT), will deliver caching for the entry and mid-level segments of the ISP market. The product will be available early next year. The multifunction network appliance, expected to ship later this year, can be sold by ISPs to small business customers.
Monday, Intel unveiled 15 new Pentium III and Pentium III Xeon processors using its 0.18-micron process technology. The new Intel Pentium III chips are said to be 20% faster than their predecessors. Copyright (c) 1999 Dow Jones & Company, Inc. All Rights Reserved. Additional Codes (N/TNM, N/WEI, M/TEC, M/NND, P/DAF, P/DCO, P/DCZ, P/DEX, P/DSE, R/CA, R/ISR, R/ML, R/NME, R/PRM, R/US, R/USW) |
