Chip company AMD today declined to either confirm or deny that it will take over manufacture of Compaq's DEC Alpha chips.
However, information received by VNU Newswire from inside AMD suggests that Compaq will announce soon, possibly next month, a deal with AMD to begin producing Alpha processors for its workstation and server hardware.
As reported here earlier, a common motherboard will allow AMD K7 users to upgrade to faster Alphas, as and when they become available.
Rana Mainee, European market research director at AMD Europe, said: "We have no plans for producing Alpha chips that I know of. We have enough demand for our K7 chips on their own."
According to sources close to Compaq, AMD's Dresden fab, which opens in the third quarter of this year, has the technology to produce fast Alphas.
As part of the deal with the US Federal Trade Commission to enable it to complete the sale of the Digital Alpha plant to Intel, Compaq was required to find two partners to produce Alphas. So far both IBM and AMD have been rumoured as the other partner to join Samsung, which has an architectural license for the Alpha processor from Compaq.
The potential deal is a strange echo of a situation some years ago in the UK. Then, AMD was interested in Digital's fab in South Queensferry, near Edinburgh, Scotland.
However, it could not afford to buy the fab as AMD was then going through troubled times.
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