To: Ali Chen who wrote (43804 ) 12/22/1998 12:35:00 PM From: Paul Engel Respond to of 1573844
Ail - Here's an AMD news story for you. You can read about a joint development to help AMD expand its LAN chip business. Paul {==============================}ebnews.com AMD fills gap in LAN-chip line with equity stake in Adhoc By Mark LaPedus Electronic Buyers' News (12/21/98, 01:34:45 PM EDT) Hoping to enter new, large LAN/WAN chip markets next year, Advanced Micro Devices Inc. today announced a major technology alliance with Adhoc Technology Inc., a San Jose-based supplier of physical-layer (PHY) ICs for Fast Ethernet networks. The deal has been expected for months. As reported in EBN last summer, Sunnyvale, Calif.-based AMD had been in serious discussions to co-develop chips with Adhoc, and was even looking at taking an equity interest in the start-up. The two companies have been mum about their discussions since that time, but this week AMD will confirm that it will take an undisclosed equity stake in Adhoc. The deal is expected to fill some critical holes in AMD's LAN chip portfolio. AMD currently sells a line of media-access controllers (MACs) for Fast Ethernet networks, but it has not previously had PHY IC technology. Early next year, sources said, AMD is expected to announce a line of stand-alone, pin-compatible PHY chips based on Adhoc's technology, which will put it in competition with the two leaders in that booming business-Broadcom Corp. and Level One Communications Inc. “The partnership with Adhoc provides AMD with PHY technology that enables system designers to both cost-reduce and simplify the design of their Fast Ethernet switches and repeaters,” said Laila Razouk, vice president and general manager of AMD's Network Products Division. AMD did not disclose its future product plans, but Dataquest Inc. analyst Jeremey Donovan said the company will leverage Adhoc's technology in other areas as well. “AMD will benefit by this alliance with Adhoc in other ways,” Donovan said. “AMD will use [Adhoc's technology] to develop combination MAC/ PHY chips, repeater ICs, and possibly switch ICs for Fast Ethernet networks.” The deal is also a shot in the arm for 16-month-old Adhoc, which is looking to unseat Broadcom, Level One, and others in the PHY IC market. Adhoc recently licensed its PHY IC technology to NEC Corp., but the Japanese company did not take an equity position in the PHY IC specialist.