Intel Corp, Santa Clara and VLSI Technology Inc, San Jose have at last closed their long-gestating joint venture transaction, with Intel paying $50m for some 5.4m shares of VLSI common and a three-year warrant for 2.7m more shares, to give Intel about 16.4% of VLSI’s shares outstanding. Under the technology agreement, Intel will license its 80386 SL microprocessor core to VLSI, which will integrate the core with its own library of Functional System Blocks, and design, market and sell the resulting chips for handheld computers and personal digital assistants. Intel will fabricate the devices containing the 80386 SL processor core.
