National Semiconductor bid $550 million for Cyrix last week in a deal that industry watchers believe will give Intel a run for its money in the processor market.
The two companies will work together to develop a system-on-a-chip technology for a sub-$500 (#312) PC.
Also last week, Intel purchased Chips and Technologies, giving both sets of newly-merged companies a complete repertoire of system, audio, imaging and video processors to integrate into a single-chip product for OEMs.
NatSemi CEO Brain Halla commented: "Cyrix's family of high performance and high integration x86 processors will enable us to drive dramatic growth for products such as network PCs, handheld PCs, Internet browsers and other appliances that are becoming extremely affordable."
Jay Swent, Cyrix's acting CEO, said the technologies and capabilities of the two companies fitted like a glove. He commented: "Cyrix led the way in enabling the sub-$1,000 PC with the launch of the MediaGX, incorporating graphics, audio and system logic functions on a single chip. By combining NatSemi's complementary technologies and high volume manufacturing with both the integrated MediaGX and high performance 6x86MX processors, we enable growth and creation of new markets."
Cyrix has fought hard to remain competitive in a sector dominated by Intel, and recently filed an infringement suit against the company. A separate dispute over the use of the phrase "MMX" was settled out of court.
Intel: C&T acquisition
Intel's $240 million purchase of graphics chip maker Chips and Technologies will help it dominate this sector of the market.
Craig Barrett, Intel's president and chief operating officer, commented: "Intel and Chips and Technologies already share an excellent working relationship based on our joint efforts in graphic accelerators. Intel's acquisition of C&T will provide us with the ability to bring strong graphics solutions to the mobile market segment."
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