Digital And Intel Announce Long Term Agreement
To Expand Relationship; Move To Settle Litigation
Intel to purchase Digitals Semiconductor operations;
Provide foundry services for Alpha chips
Digital to develop systems based on Intel's 64-bit
SANTA CLARA Calif.MAYNARD, MA, Oct. 27, 1997 -- Digital
Equipment Corporation and Intel Corporation today announced that they
have agreed to establish a broad-based business relationship that will
provide significant short- and long-term benefits to both companies and
The multi-year agreement includes sale of Digital's semiconductor
manufacturing operations to Intel for approximately $700 million,
cross-licensing of patents, supply of both Intel and Alpha
microprocessors and development of future systems based on Intel's
64-bit microprocessors. No other financial details were disclosed.
Digital and Intel agreed to request a stay of all lawsuits until U.S.
government approval is granted which is required to finalize the
"This agreement meets both companies needs," said Craig Barrett,
president and chief operating officer of Intel. "We are pleased to get
alignment with one of the worlds major computer companies on IA-64
microprocessors and to let the marketplace judge our work."
"This agreement brings issues between the two companies to a resolution
that benefits customers in many important ways," said Digital Chairman
Robert B. Palmer. "It ensures long-term availability of Digital's
Alpha-based offerings for Open VMS, Digital UNIX and Windows NT
customers. In addition, Digital will develop Digital UNIX and Windows
NT offerings on the IA-64 architecture."
Key components of the agreement pending government approval:
Digital and Intel will enter into a 10 year patent cross license
Intel will purchase Digital's semiconductor operations including
state-of-the-art facilities in Hudson, Massachusetts as well as
development operations in Jerusalem, Israel and Austin, Texas for
approximately $700 million.
Digital will retain its Alpha and Alpha-related semiconductor
design teams to continue to develop future generations of Alpha.
Intel will make offers of employment to other Digital
Intel will serve as a foundry for Digital for multiple generations of
Intel will provide Intel products and comprehensive technical
support to Digital consistent with practices for other major Intel
Digital will develop a full line of systems based on Intel's IA-64
Digital will port, with technical assistance from Intel, its
industry-leading Digital UNIX to Intel's IA-64.
Intel will obtain rights to manufacture and sell other non-Alpha
Digital semiconductor products.
"Digitals mission is to deliver with our partners Internet business
solutions based on high-performance platforms and services," Palmer
said. "This agreement strengthens our ability to offer products that help
make our customers more competitive and confirms our dual Alpha and
Intel platform strategy."
Digital Equipment Corporation, recognized for product and service
excellence, is a leading supplier of high-performance, Web-based
computing solutions which help enterprises compete in the global
marketplace. Digital gives its customers a winning Internet advantage
through a comprehensive portfolio of Internet solutions based on
award-winning systems, advanced networking infrastructure, innovative
software, and industry applications -- including those from its business
partners. The expertise and experience of Digital employees help
customers plan, design, implement, manage and support Internet
solutions in countries throughout the world. For the latest company
information, visit Digital on the World Wide Web at
Intel, the world's largest chip maker, is also a leading manufacturer of
personal computer, networking and communications products. Additional
information is available at www.intel.com/pressroom.