Intel Investors - More on the Intel-Analog Devices deal
"TI must be livid," said Danny Lam, an analyst with Fisher-Holstein
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Intel, Analog Devices to form DSP venture
By Michael Kanellos
Staff Writer, CNET News.com
February 2, 1999, 5:25 p.m. PT
URL: news.com
update Intel and Analog Devices will unfurl details on a joint development agreement centered on digital signal
processors tomorrow that appears targeted at taking market share away from Texas Instruments.
Intel and Analog will hold a press conference tomorrow at 1:30 p.m. PT to discuss details behind a joint development
agreement between the two companies.
The agreement is expected to revolve around DSPs, said sources, which are used for managing digital signals
inside of cell phones, set-top boxes, and other devices. DSPs, which can range in price from a few dollars to close to
$100, essentially control how digitized signals containing analog information, such as digitized music, are processed
and eventually presented.
Analog Devices earns most of its revenue from selling these chips. Intel does not have its own product for the DSP
market, which has become fairly lucrative. Rumors, meanwhile, have circulated about a deal of this sort in recent
weeks, said sources.
Although the details of the Intel-Analog alliance are not yet know, the entry of the microprocessor giant into this
market could have an especially strong effect on Texas Instruments. Not only does the company lead the DSP
market, it has largely structured its business strategy around the chips.
"TI must be livid," said Danny Lam, an analyst with Fisher-Holstein
"This is what TI has put all of its money into," said Fred Zieber, semiconductor analyst with Pathfinder Research.
Reuters contributed to this report. |
