The US government has approved the settlement between Intel and Digital Equipment Corp. that includes the US$700 million sale of DEC's semiconductor manufacturing operations to Intel. The Federal Trade Commission's approval comes with the understanding that DEC must also offer its Alpha technology to other chipmakers.
The FTC said today's 5-0 decision was aimed at preserving competition by assuring "the viability of Digital's Alpha chip, regarded by many as the fastest microprocessor in the world."
DEC originally had agreed to leave Alpha chip production entirely up to Intel. But federal watchdogs said that deal could have allowed Intel to possibly endanger development of the Alpha technology, adding that they wanted to make certain "that Intel does not have exclusive control over Alpha production."
Under the modified agreement, DEC must also license the Alpha technology to Advanced Micro Devices and Samsung Electronics. The company would also begin certifying IBM or another company approved by federal regulators as an alternative production source for Alpha chips.
Last October, Intel and DEC reached an agreement under which Intel will get a state-of-the-art semiconductor fabrication facility in Hudson, Massachusetts, as well as development operations in Jerusalem and Austin, Texas, and serve as a foundry for the 64-bit chips.
The FTC isn't through with either company yet. The agency is also investigating potentially anti-competitive marketing practices by Intel and is still gathering information in its review of Compaq's $9.6 billion purchase of DEC.
