To: kash johal who wrote (82778 ) 12/13/1999 12:18:00 PM From: Charles R Respond to of 1571816
Here is some interesting stuff especially in the context of the x86-64 stuff we are debating on. This is the beginning of what I think will be a long-term 64-bit partnership between CPQ/AMD - CPQ/AMD to x86-64 might be like HP/Intel to IA-64. And I would take CPQ over HP for the server market anyday. *************************** Compaq, Samsung to Invest in Compaq's Alpha Chips HOUSTON (Reuters) - Compaq Computer Corp. (NYSE:CPQ - news) and Korea's Samsung Electronics Co. Ltd. (05930.KS) on Monday said they would invest $500 million to develop Compaq's Alpha microprocessor for running new types of business computers. The investment by Compaq, Samsung and Alpha Processor Inc. (API), a Samsung unit, will help expand the use of Alpha into new markets such as single-purpose computer servers, network appliances, and for controlling Internet equipment, they said. In a statement, Daeje Chin, Samsung's chief technology officer and API's chairman and CEO, said the investment was part of a plan by the three partners to spend more than $1.5 billion to develop Alpha over the next five years. The expanded ties between Compaq, Samsung and API are part of a bid to revive the fortunes of the Alpha chip, a flagging rival to Intel Corp.'s (NasdaqNM:INTC - news) dominant Pentium chips. Compaq acquired Alpha in 1998 from Digital Equipment Corp. The plan also looks to position Alpha for use in running Linux software-based computers. Linux is an alternative operating system to Microsoft Corp.'s (NasdaqNM:MSFT - news) Windows operating system, which relies on Intel computer chips. Shares of Compaq were off 1/8 to 25 in early trading on the New York Stock Exchange. Samsung shares closed down 8000 Korean won at 258000 won on the Seoul stock market on Friday. The companies said API plans to collaborate with Advanced Micro Devices Inc. (NYSE:AMD - news), Intel's key rival, on related technologies such as Lighting Data Transport (LDT), in a bid to further expand the reach of Alpha in the market. LDT is part of a plan by Sunnyvale, Calif.-based AMD to make software designed to run on older 32-bit Intel-based computer chips run on AMD's upcoming 64-bit chip design, its eighth-generation processor, known as SledgeHammer. The future AMD chip is designed to compete with Intel's upcoming IA 64 chip design, the next generation of computer chips from the world's largest chip maker. The Compaq-Samsung deal also calls for Samsung to invest in semiconductor manufacturing process advancements such as copper interconnect, low-K dielectric, and silicon-on-insulator technology -- technologies that will speed performance and cut power consumption of the chips. These technologies are crucial for keeping Alpha competitive with rival microprocessors such as PowerPC technology from International Business Machines Corp. (NYSE:IBM - news) and Motorola Inc. (NYSE:MOT - news), as well as Intel chips. Compaq said its contribution would include its previously announced incremental funding increase to boost the fortunes of its Tru64 Unix/Alpha line of minicomputers. A Compaq spokesman said $200 million of the $500 million would be contributed by Samsung for chip manufacturing technology, and $300 million would be jointly contributed by Compaq and API. The $300 million investment would go toward funding efforts to promote development of software running on the Alpha chip, a doubling of sales support, and an aggressive, worldwide marketing campaign, Compaq said. In addition, Compaq has partnered with Cygnus Solutions Inc., a developer of Linux programming tools that has agreed to be acquired by Red Hat Inc. (NasdaqNM:RHAT - news), to boost the number of Linux applications ready to run on Alpha-based computers. Alpha was originally designed to run on the Unix business software operating system, a predecessor of Linux and the principal rival to Microsoft's Windows software system. Compaq and Samsung said Network Appliance, a maker of network management computers and specialized devices designed to speed Internet use, was basing its products on Alpha chips. Amid general declines in major technology issues on Monday, Intel was off 1 at 71-1/4 on the Nasdaq stock market. AMD was down 5/16 to 28-15/16 on the NYSE, while Microsoft fell 7/16 to 93-3/8, also on Nasdaq. --------------------------------------------------------------------------------