Intel To Buy Level One For $2.2 Bn

Intel To Buy Level One For $2.2 Bn
Tom Foremski
Intel said it will acquire US network equipment firm Level One Communications in a $2.2bn deal.
The move by Intel signals a new business direction for the world’s largest chip maker and a away from reliance on microprocessor sales. Intel has been losing market share at the low end of the microprocessor market.
The acquisition of Level One will help bolster Intel’s network equipment products and put it into more direct competition with industry leader Cisco Systems and other network equipment makers. Intel is expected to use its chip manufacturing prowess to produce low cost high performance network communications chips.
Intel has been making a series of investments in communications firms, believing that faster Internet and network access is a key bottleneck in the performance of computer systems. With faster communications, Intel should be able to improve sales of high end microprocessors.

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