Intel Broadens Semiconductor Line

Intel Corp.’s movement beyond desktop
chips was furthered Tuesday when it purchased Basis Communications Corp., a
maker of network processors, for about $450 million in cash
and stock.

The acquisition is subject to regulatory approval and customary closing
conditions. When complete, Basis will become a wholly-owned subsidiary of
Intel (INTC) operating within Intel’s Network Communications Group.

Basis designs and markets advanced semiconductors and other products used in
equipment that directs traffic across the Internet and corporate networks.
Its Service-Specific Network Processors will be integrated into Intel’s
Internet Exchange architecture.

The flagship of the IX architecture is Intel’s
IXP 1200 network processor, a “packet” processing device that allows new
features and functions to be quickly added to communications gear. Intel
will use Basis’ technology to enhance its current product line.

“The acquisition of Basis allows us to supplement the IX architecture with a
network processor specifically designed for customer premise equipment, such
as residential gateways and routers built to take advantage of DSL
deployment,” said Tom
Franz, Intel vice president and general manager, Network Processing Group.

“Intelligent systems based on this technology will help enable businesses
and homes to take full advantage of new services made possible by high
bandwidth connections to the Internet.”

Basis also offers wide area network and serial communication
semiconductor products, as well as PC card and “interface” controller
devices targeted at the communications equipment market segments.

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