Intel will buy a network startup to compete with Broadcom

Intel will become the owner of a network startup Barefoot Networks reports The Wall Street Journal. Details and amount of the transaction were not disclosed. Earlier, Internet giants Google, Alibaba, Tencent, and Goldman Sachs invested in Barefoot Networks. It is expected that the startup will pass under the full control of Intel in the third quarter of this year.
Intel has long dominated the computer processor market. The company successfully promoted its data center chips as cloud computing expanded. Now Intel intends to gain a foothold in other technologies.
Although Intel is the largest US manufacturer of computer chips, the company does not produce chips that control communication over Ethernet. The recognized leader in this field is Broadcom.
The purchase of Barefoot Networks should solve the problem of a sharp increase in data volume. The surge in the amount of information processed led to a significant increase in the demand for computing power for analysis in the USA, as well as for network systems for data exchange inside data centers.
Barefoot technology differs from other Ethernet chips in its flexibility: customers can program the chips so that they work more efficiently depending on the specific use.
The company expects that the acquisition of Barefoot Networks will allow it to compete with Broadcom in the market of chips for Ethernet. Intel is not the only microprocessor manufacturer that has turned its attention to the network business. Interest in networking technologies has been growing recently. In March, Nvidia, a graphics and chip maker, announced its intention to acquire network company Mellanox Technologies for approximately $ 7 billion.

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