To: Paul Engel who wrote (89562 ) 10/6/1999 2:12:00 AM From: Process Boy Respond to of 186894
Paul and Thread - Intel enters mainstream level 2 switch markettechweb.com Intel Enters Mainstream Switch Market (10/05/99, 5:12 p.m. ET) By Mark LaPedus, Electronic Buyers' News Continuing its push into the communications IC market, Intel has quietly acquired a small equity stake and formed a product development alliance with ADMtek, a supplier of switching chips. Under the terms of the agreement, Intel and ADMtek will co-develop a line of low-cost, single-chip switching ICs for use in Fast Ethernet networks. The new Layer 2-based products will be based on switching chips from ADMtek and physical-layer ICs from Level One Communications, a Sacramento, Calif.-based subsidiary of Intel. The move enables Intel to enter the booming switch chip market for Layer 2 applications -- a market dominated by Allayer, Broadcom, Galileo, and other suppliers. Officials from San Jose, Calif.-based ADMtek confirmed reports about the company's alliance with Intel. "We've closed the deal with Intel," said Allen Lee, business development manager at ADMtek's subsidiary in Hsinchu, Taiwan. Intel officials said the company has been in discussions with ADMtek, but said a deal has not been reached. Lee added that Intel and ADMtek would roll out their first products during the first quarter of 2000, but he did not elaborate on the details of Intel's investment in the company. Intel appears to be working with ADMtek for several reasons. For one, ADMtek's major shareholder is Taiwan's Accton Technology, one of the island's largest communications equipment makers. 3Com, Intel's counterpart in the communications equipment arena, is also an investor in ADMtek.