December 13, 1999 1:55pm
Compaq, Samsung in $500M pact to
advance Alpha
By Ken Popovich PC Week
Compaq Computer Corp., Samsung Electronics and
Alpha Processors Inc. (in which Samsung owns a
majority stake) today announced a $500 million
agreement to develop and market 64-bit Alpha
microprocessors and operating systems.
The "memorandum of understanding" is aimed at
expanding Alpha into new markets such as
fixed-function servers, network appliances and Internet
network infrastructure, officials said.
As part of the deal, Compaq agreed to purchase an
unspecified number of Alpha chips from Samsung over
the next year. South Korea-based Samsung is the
largest supplier of Alpha processors.
IBM and Compaq reportedly have been holding talks
about producing the next-generation Alpha processor,
the EV7. Neither company would confirm the
discussions.
For its part, Samsung agreed to boost performance of
the processor by investing in new manufacturing
technology. In particular, Samsung will look at
implementing copper wiring and silicon-on-transitor
technology.
Linux a focus as well
In addition, the three companies agreed to finance
development of Linux software for Alpha-based
systems. Houston-based Compaq is targeting Alpha
systems at high-performance computing niches after it
decided to stop selling Windows NT-based Alpha
systems in the broader market earlier this year.
Compaq acquired Alpha technology when it purchased
Digital Equipment Corp. in June 1998.
"With API and Samsung, we are jointly reinforcing our
long-term commitment to Alpha," said Michael
Capellas, Compaq president and CEO. "Compaq
continues to build its worldwide Internet infrastructure
leadership, and Alpha technology is a strategic element
in that effort."
"We believe this agreement will lead to additional
investments by these three companies exceeding $1.5
billion during the next five years," said Daeje Chin,
executive vice president and chief technology officer of
Samsung and chairman and CEO of API, in Concord,
Mass.
"API, Compaq and Samsung recognized the business
growth potential for Alpha and will leverage
next-generation Alpha performance solutions to make
technology advances that ensure its leadership
position," Chin added. |
