Intel to hire workers from chip unit Hewlett is closing

`You're always looking ... to bolster your expertise'

September 14, 2001|By BLOOMBERG NEWS

SANTA CLARA, Calif. - Intel Corp., the world's biggest maker of computer chips, said yesterday that it will hire most of the employees from a Hewlett-Packard Co. unit that builds chip sets for server computers that run Web sites.

The workers, part of the Cupertino Systems Lab, will join Intel on Sept. 24, Intel spokesman Robert Manetta said.

Hewlett-Packard is closing the group, which has fewer than 100 people, Manetta said, noting that Intel offered jobs to the entire group and "virtually all" accepted.

Hewlett-Packard agreed to buy rival Compaq Computer Corp. last week for $19.4 billion in stock and now must decide where to eliminate 15,000 jobs from the combined company, in addition to 7,000 workers it previously planned to cut this year.

Compaq decided earlier to discontinue its own server-chip lineup, known as Alpha.

Santa Clara, Calif.-based Intel is picking up Compaq workers and intellectual property as that happens.

"You're always looking for expertise and to bolster your expertise," Manetta said. "This is good for us. It can help us in the enterprise space."

Hewlett-Packard, the second-biggest computer maker, builds some servers based on Intel chips and others using its own PA-RISC chips.

Manetta declined to comment on speculation that Intel eventually would buy the entire chip division.

The unit Intel is getting designs and builds chip sets that help microprocessors communicate with the rest of the server. Intel already is the world's biggest maker of chip sets.

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