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Intel and Analog Devices Form Communications Chip Venture

Photonics Spectra
Mar 1999
Computer chip maker Intel Corp. in Santa Clara, Calif., and Analog Devices Inc. in Norwood, Mass., have formed a venture to design and manufacture digital signal processors for communications and computing devices.

Digital signal processors are used in cellular phones, pagers, digital cameras and video equipment. The companies will collaborate in designing core architecture to manufacture the processors and will set up a design group based in Austin, Texas.
The market for digital signal processors eclipsed $3 billion last year, and some estimate it could grow 25 to 30 percent this year.
News of the deal sent stocks for both companies soaring. Shares of Analog Devices gained $5.75, to $33.88, while shares of Intel jumped $4.06, to $138.69.

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