Intel Corp and VLSI Technology Inc have finally gone public on their long-gestating alliance on iAPX-86-compatible processors for handheld devices, and details are much as expected – Intel will license the design of its low-power 80386SL microprocessor core to VLSI and will invest about $50m for a stake of under 20% (believed to be 19%) in VLSI (CI No 1,927). VLSI will integrate the 80386SL core with its library of personal computer Functional System Blocks to design application-specific and customer-specific chips for designers of handheld computers. Chips that include the microprocessor core will be fabricated for VLSI by Intel, while support devices will be manufactured by VLSI, which will market the resulting chip sets. The exact number of shares Intel will get will be based on a formula to be applied prior to closing of the agreement. Intel also gets right of first refusal if the principals of VLSI want to sell the company. The partners are confident that the market for personal information appliances, personal digital assistants or picocomputers will soar, and expect them to be communications-oriented, to offer multiple interfaces – pen, voice, mouse, keyboard, be simple to use and have a variety of applications options. SRI International Inc pitches the market for them at 17m units a year by 1995. Chips from the agreement are expected to be available from VLSI by the second half of next year.
