To: DiViT who wrote (222 ) 2/23/1998 9:57:00 PM From: Maya Respond to of 324
More on Intel-StrongARMbiz.yahoo.com Intel in pact to license StrongArm chip SAN FRANCISCO, Feb 23 (Reuters) - Intel Corp said it had reached a licensing pact for the StrongARM processor - a chip used in handheld devices and set-top boxes - a deal that will let Intel enter these emerging areas with a low-cost part. Intel agreed to license the processor from Advanced RISC Machines (ARM), based in Cambridge, U.K., as part of its proposed $700 million acquisition of certain assets of Digital Equipment Corp's [NYSE:DEC - news] semiconductor operations. A final agreement between Intel and ARM is contingent upon the U.S. Federal Trade Commission's approval of the Intel/Digital deal, which is still pending. ''We still need federal government approval,'' said an Intel spokesman. Intel and Digital announced the deal, a proposed settlement to Digital's patent infringement suit against Intel, in late October. Digital has been manufacturing the StrongARM processor with its excess manufacturing capacity at its Hudson, Mass. plant where it makes its Alpha chips. Analysts said that it had not been clear if Intel would continue to make the chip for ARM, as part of its pact with Digital. The StrongARM chip is used in some handheld devices such as Apple Computer Inc's (AAPL - news) Newton MessagePad. ''The doubt centered on the fact that Intel has never before tried to weave in or tried to build a product around someone else's intellectual property,'' said Nathan Brookwood, a Dataquest Inc analyst. ''Today's announcement removes that doubt. Intel is saying, 'yes we are very interested in it.''' The chip will also represent a way for Intel to target the emerging market for low-cost consumer devices, from set-top boxes to Internet access devices to sub $1,000 PCs, product areas not yet fully addressed by the semiconductor giant. ''We plan to support the existing product and to enhance the product and move it forward,'' the Intel spokesman said. More Quotes and News: Apple Computer Inc (Nasdaq:AAPL - news) Digital Equipment Corp (NYSE:DEC - news) Intel Corp (Nasdaq:INTC - news)