Hewlett Packard (HP) has reportedly transferred 100 of its silicon designers to Intel as part of a range of cost-cutting measures.
The group of Very Large-Scale Integration specialists has transferred from HP's PA-Risc group to Intel's advanced components division. HP said they have the skills to design for Intel's Itanium processor family, for which HP plans to increase support.
HP workers join a 500-strong Intel team, and a spokesperson for the latter told US media that the group would "accelerate development of Intel server building blocks and chip sets". The spokesperson also confirmed that the deal did not involve any ongoing projects or technology.
The move raises questions about both firms' high-end chip set strategies. Commentators predicted that the HP workers would be used to help Intel extend its high-end offerings beyond the 870 chip it has demonstrated which, claims Intel, can potentially support up to 16 processors, or 256 with the inclusion of an original equipment manufacturer switch and interconnect.
HP is adamant that the move does not mean it has abdicated its place in the market for high-end server silicon. The firm still has a significant number of designers, and will continue to work on future Itanium products as well as working with Intel, it said.
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