Chipset manufacturer Via Technologies Inc. signed a letter of intent to buy National Semiconductor Corp.'s Cyrix Corp. stand-alone PC microprocessor business. The deal was announced June 30.
Taiwan-based Via intends to continue to develop and market the Cyrix line of processors, the company said in a statement. The purchase price was not disclosed.
Additional details about the timing and structure of the deal will be announced this month, Via said.
Santa Clara, Calif.-based National had set a June 30 date for selling or shutting down its Cyrix operation, which it acquired in November 1997. The company announced May 5 that it was pulling out of the PC processor business by selling off the bulk of its Cyrix subsidiary.
National executives said trying to compete in the PC processor market was dragging down its
financial performance. Cyrix faced stiffer competition from Intel Corp., which beefed up its Celeron chip for low-cost PCs.
"Obviously, it's good news for Cyrix that National found a buyer, compared to the alternative," said Mike Feibus, principal analyst at Mercury Research, Scottsdale, Ariz.
Via is a proven low-cost manufacturer, which will benefit Cyrix, he added.
"I still think Cyrix has a future," Feibus said. "The current troubles I think are just that, current troubles. National, unfortunately, was running out of time to show investors some road to profitability and really couldn't afford the luxury of seeing Cyrix back to profitability."
Via's deal with National spurred speculation that Via aims to obtain the rights to National's patent cross-license with Intel. Santa Clara-based Intel last week filed a federal lawsuit against Via alleging patent infringement, breach of contract and unfair competition. The suit came after Intel terminated its license agreement with Via on June 18.
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