Intel invests in networking firm

The chip giant makes a move in the networking market, investing $14 million in Ancor Communications, a network equipment firm.

Chip giant Intel today said it is investing $14 million in Ancor Communications, a networking technology maker.

Under the terms of the agreement, Intel and the Eden Prairie, Minn.-based Ancor will develop and market switches based on the InfiniBand technology.

Intel has made a number of moves into the networking and communications markets in recent months. The chipmaker has said that there are huge opportunities for technology companies to provide the backbone needed to help merge the new voice and data networks.

InfiniBand was formerly referred to by the working name "System I/O." It governs how devices such as network cards plug into powerful computers and how processors within those systems will communicate with each other.

Ancor Communications develops switches, interface adapters and application-specific integrated circuits based on Fibre Channel, a high-speed connection method using either copper wires or fiber optic cables.

The companies plan to bring the new switches based on InfiniBand in 2001.