Intel Corp continued its push into the networking market yesterday with the announcement that is has acquired Softcom Microsystems Inc for an undisclosed cash sum. Privately held Softcom Microsystems makes chips for high-end access devices, routers and switches. Specifically, the chips process voice and data packets on high-speed ATM and Sonet networks. The move is part of Intel’s strategy to round out its networking product portfolio, the division which analysts say is causing the chip manufacturer the most trouble. Although Intel denies the unit is in trouble, in its March quarterly figures, all other sectors showed revenue growth while its Network Communications and New Business divisions showed a $1bn loss.
At the low end, the company makes its own networking chips for its series of networking adatper cards. In March, to address the enterprise space, it acquired Level One Communications Inc, for $2.2bn in stock. Level One makes silicon components for enterprise networking hardware including routers, hubs and switches. The acquisition of Softcom will fill the gap at the high end. It develops and markets semiconductor products for OEMs in the high-end networking and communications market segments, as well as large enterprises. As part of the announcement, Intel said that Tony Stelliga, president & CEO of Softcom, will continue as general manager of Softcom, reporting to Mark Christensen, vice president and general manager of Intel’s Network Communications Group. In addition, all Softcom’s 32 employees will become employees of a subsidiary of Intel.
