One Year Ago: Intel to buy Chips and Technologies

This story first published July 28, 1997

Intel is to buy Chips and Technologies (Chips) in a move that beefs up its graphics muscle.

The chip giant said yesterday it has a definitive agreement to acquire San Jose, California-based Chips, a veteran maker of graphics accelerators and other products. The purchase rounds out its plans to make what it calls 'Visual Computing' more prevalent on PCs. Chips claims a 45 per cent share of the mobile PC graphics market, selling its HiQColor chips to Toshiba, Acer and other big notebook makers.

Intel will pay $17.50 per share to make Chips a wholly-owned subsidiary. In the last fortnight, Chips posted a $4.4 million operating profit on $37.9 million revenues for its most recent quarter.

Intel recently bought into Avid Technologies, a video editing software specialist.

"Intel and Chips and Technologies already share an excellent working relationship based on our joint efforts in graphics accelerators," said Craig Barrett, Intel's president and chief operating officer. "Intel's acquisition of Chips and Technologies will provide us with the ability to bring strong graphics solutions to the mobile market segment."