Intel Buys Broadband Chip Unit

Intel is not slowing down in its rally to become the major supplier of silicon for Internet networking and communications products.

Today Intel announced it will acquire the telecom component products (TCP) division of Stanford Telecommunications. The companies didn't disclose the financial terms of the transaction.

By buying Stanford Telecom's cable and broadband wireless silicon unit, Intel will compete even more directly with Broadcom, which is the leading supplier of chip technologies for cable modem manufacturers.

The acquisition is the latest in a mad spending spree by Intel to snap up networking component technology companies, which have included Level One Communications, a high-speed networking chip maker, and Softcom Microsystems, a player in the emerging network processor market.

Stanford Telecom's TCP division, based in Sunnyvale, Calif., will become part of Intel's Network Communications Group. The companies said they do not expect any immediate changes to their respective product lines. The TCP division develops silicon components for cable head-end and modem equipment, as well as high-speed wireless equipment.

Intel has positioned the Stanford Telecom components as providing another physical-layer technology within its Internet Exchange Architecture. The Internet Exchange Architecture is a schema for using programmable chips in networking and communications products that Intel announced earlier this month.

Intel was able to buy Stanford Telecom's TCP business as a byproduct of the pending merger between Stanford Telecom and Newbridge Networks. Newbridge will keep Stanford Telecom's wireless broadband products and satellite personal communications groups.