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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: puborectalis who wrote (85196)	7/10/1999 4:00:00 PM
From: puborectalis	Respond to of 186894

Intel scoops up Softcom to continue expansion in communications arena A service of Semiconductor Business News, CMP Media Inc. Story posted 8:30 a.m. EST/5:30 a.m., PST, 7/8/99 By Mark LaPedus Electronic Buyers' News SANTA CLARA, Calif. -- In another bold step into the communication-IC market, Intel Corp. has stunned the industry by acquiring Softcom Microsystems Inc., a Fremont, Calif.-based supplier of network-processor and board-level products for use in high-end LAN/WAN applications. Financial terms of the acquisition were disclosed. The move shocked analysts because Intel itself is developing its own line of network-processor products--which, in many respects, competes with those from privately-held Softcom. Softcom's network-processor line, dubbed the P3, is a RISC-based architecture designed for use in ATM, SONET, and other LAN/WAN applications. Intel, on the other hand, is developing a network-processor based on a new StrongARM chip, a product that is reportedly supposed to ship next year. Now, it is unclear what Intel plans to do with its own network-processor line, but it is becoming apparent that the Santa Clara company wants to become a major player in the communication-IC business. Earlier this year, Intel announced plans to acquire LAN/WAN-chip specialist Level One Communications Inc. for $2.2 billion. Recently, Intel also acquired Dialogic, a supplier of computer-telephony integration products. Intel has also made several significant acquisition in other communication companies, as well. Under the terms of its latest deal, Software will become a subsidiary of Intel. Tony Stelliga, president and CEO of Softcom, will become general manager this subsidiary, reporting to Mark Christensen, vice president and general manager of Intel's Network Communications Group.