Compaq Computer has chosen
Korea's Samsung Electronics to manufacture its newest Alpha
processor in a deal worth $500 million.
The two companies will work together to expand the market for the Alpha
chip, including further joint investments in marketing and development
of the processor.
The investment by Compaq, Alpha Processor Incorporated (API)
and Samsung will extend Alpha's position in enterprise environments
including a significant focus on e-business technology. It will also expand
Alpha into new markets such as fixed-function servers, network appliances and Internet network infrastructure, the companies said.
The agreement comes amid speculation by analysts and computer industry
experts that Compaq is
the Alpha design to IBM as well.
A Compaq spokesman declined to comment on possible talks with IBM,
although he said today's agreement doesn't preclude Compaq from
licensing the Alpha design to other manufacturers, Bloomberg reported.