Intel Expands Network Chip Line

Intel Corp. Wednesday spent $1.25 billion
to buy Danish networking chipmaker Giga
A/S, an acquisition which will add to its weight in a key Internet
infrastructure subsector.

Giga’s networking chips are used to build
high-speed optical infrastructure for the Internet. The company specializes
in high-speed communications chips, and is a leading supplier of OC-48 (2.5
gigabits-per-second) and OC-192 (10 gigabits-per-second) products.

Giga will be integrated into Intel’s (INTC)
Level One Communications Inc.

“New, higher-bandwidth access technologies such as xDSL and cable are being
deployed at a rapid rate, creating the need for much greater capacity at the
core of the network,” said Mark Christensen, vice president and general
manager, Intel
Network Communications Group.

“This new optical communications chip design
capability, combined with our existing Level One Communications, Inc.,
design team, gives Intel key new products and expertise to address the
rapidly growing demand for
high-bandwidth communications infrastructure.”

This is Intel’s third foray in to Denmark for engineering support, first
through its acquisition of Case Technology A/S and by taking on Olicom A/S’
staff last year.