Digital Equipment Corp’s failure to agree licensing terms for the Alpha RISC chip in Taiwan looks an even bigger mistake by the company with the news that Hewlett-Packard Co has signed a letter of intent with the Taiwan Economics Ministry to form a strategic alliance. Under the agreement, Hewlett plans to set up a product and technology development centre in Taiwan and strengthen its local development of software, high performance RISC processors and personal information products. The agreement is intended to help upgrade Taiwan’s ability in the research and development and manufacture of computer and communications systems.