Samsung Electronics has paid Digital for an architectural licence to its Alpha chip, giving Samsung intellectual property rights, access to patents and to future iterations of the technology. The terms of the deal were not disclosed but Compaq, now in the process of buying Digital, could benefit from a double Digital windfall, as the company has also finalised the sale of its networking division to Cabletron Systems for approximately $430 million (#260 million). The extended relationship with Samsung over Alpha should reassure doubters that the architecture has a future, according to analysts. Samsung gains the right to make versions of Alpha for specific markets and the company has set up an Alpha subsidiary to reflect its importance. Daeje Chin, chief executive of Samsung's system LSI division, said the agreement ensures it will add to the company's recent 600MHz version of the 21164 Alpha processor. "We now have access to Digital's future generation Alpha designs as well as the freedom to build successive generations of cutting-edge Alpha products to serve a broader customer base," he said. Digital said the consummation of its deal with Cabletron has led to a co-operative partnership, covering reseller and services contracts. Digital and its channel will sell Digital-branded kit and Cabletron products. John Ardini has been named vice president of Digital's network business segment, a new unit set up to support the Cabletron business.
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