Samsung to invest in Alpha microprocessors

By Staff -- Purchasing, 2/10/2000

Compaq Computer and Samsung Electronics will invest $500 million to develop Compaq's Alpha microprocessor for running new types of business computers.

The investment will help expand the use of Alpha into new markets such as single-purpose computer servers, network appliances and Internet equipment. The investment is part of an effort to revive the Alpha chip, a potential rival to Intel Pentium chips.

Compaq acquired Alpha when it bought Digital Equipment Corp. in 1998. The Compaq-Samsung deal also calls for Samsung to invest in semiconductor manufacturing process advancements such as copper interconnect, low-K dielectric, and silicon-on-insulator technology--technologies that will speed performance and cut power consumption of the chips. These technologies are crucial for keeping Alpha competitive with rival microprocessors such as PowerPC technology from International Business Machines Corp., and Motorola Inc. as well as Intel chips.

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