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The Spokesman-Review Newspaper
Spokane, Washington  Est. May 19, 1883

Ftc Seeks Data On Intel Deal

Associated Press

The Federal Trade Commission wants more information about Intel Corp.’s planned $420 million purchase of Chips & Technologies Inc.

The agency, as is its policy, would not confirm that it had asked for more data, but such requests are not unusual in major acquisitions. The companies said Wednesday that the FTC made the request.

But the FTC’s request could delay the deal. The agency can review the matter for an additional 10 days after getting information. Intel said it does not yet know when it will go through with the purchase.

Intel, whose microprocessors are the brains of 85 percent of the world’s personal computers, announced last month it would buy Chips & Technologies, a maker of chips that improve the graphics capabilities of laptop computers.

Neither company said why the FTC asked for more information. But some other graphics-chips companies have expressed concern about Intel’s entry into the market.

The planned purchase of Chips & Technologies is the latest move by Intel to improve the graphics capabilities of its products. Earlier this year, the company introduced versions of its Pentium and Pentium Pro microprocessors with MMX technology that enhances graphics and video as well as sound.

Intel also is working on a three-dimensional graphics board for desktop computers and is working with Lockheed Martin Corp. on a new graphics chip.