US Report: Digital, Intel close Alpha sale

Digital and Intel have closed the deal on the sale of Digital's semiconductor manufacturing operations.

The $625m (£383m) deal makes Intel the foundry of Digital's 64-bit Alpha processor. It also settles an ongoing patent dispute between the two companies.

Digital sued Intel last May, claiming that Intel's processors violated its patents. The two companies reached a settlement in October that included the transfer of Digital's operations in Hudson, Mass., Austin, Texas and Jerusalem.

As part of the settlement, the two companies said today that they would formally drop lawsuits filed in Massachusetts, California and Oregon.

The Federal Trade Commission had questioned the sale, and last month brokered a deal whereby Digital and Intel would license Alpha manufacturing rights to other companies, including Advanced Micro Devices and IBM.

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