Compaq, Samsung expand Alpha collaboration with investment pledge

HOUSTON--Compaq Computer Corp., Alpha Processor Inc. (API) and Samsung Electronics Co. Ltd. today announced an agreement to pump $500 million in combined investments into advanced Alpha RISC processor technologies and applications.

The agreement expands collaboration between the companies, and it includes Samsung's plans to invest in new semiconductor processing technologies, such as copper interconnect, low-k dielectrics and silicon-on-insulator (SOI). Samsung in South Korea has been battling IBM Corp. to become a key source of advanced Alpha processors to Houston-based Compaq, and a number of these processing technologies are expected to play a major factor in which company wins out (see Dec. 7 story).

A spokesman for Compaq said the new agreement with Samsung was not exclusive, and the door remained open for IBM Microelectronics to strike its own pact with the Houston computer company.

Under the expanded alliance between Compaq, Samsung, and Samsung's API subsidiary, the companies said they will make "unique and joint technology contribution" as well as investments in marketing to expand the use of the Alpha processor in a range of systems applications. The companies did not disclose what portion of the joint $500 million would be made by Compaq, Samsung or the API subsidiary.

"Over the next decade this collaboration will continue to expand and thrive," said Daeje Chin, executive vice president and chief technology officer at Samsung Electronics who is also chairman and chief executive of API in Massachusetts. "For example, we believe this agreement will lead to additional investments by these three companies exceeding $1.5 billion during the next five years," Chin said.

Compaq, Samsung, and API said they plan to expand Alpha's use in a number of systems applications, such as fixed-function servers, network appliances, and Internet network infrastructure equipment. "With API and Samsung, we are jointly reinforcing our long-term commitment to Alpha and we are committed to expanding Alpha in target markets," said Michael Capellas, president and CEO at Compaq in Houston.

The investments will cover Samsung's development of the next-generation Alpha EV7 processor. Samsung is also developing two Alpha chip sets--the Capstain for uniprocessor workstations and small servers, and the Tasman for four-to-eight processor servers. The new chip sets also will support the Athlon microprocessor from Advanced Micro Devices Inc. AMD's x86-compatible Athlon uses the same EV6 bus as the Alpha RISC chips.

Today's agreement also involves collaboration between Samsung's API subsidiary and AMD for a new I/O technique, called Lightning Data Transport, for systems.--Additional reporting by Jack Robertson from interviews in Korea and U.S.