Intel is acquiring the web chip startup Barefoot Networks Inc. to better compete with Broadcom while strengthening Barefoot network chip technology.
The Barefoot website shows that Barefoot was founded in 2013 by Stanford University professor Nick McKeown and quickly attracted investment. Before Intel implemented the acquisition, Barefoot had received investments from Alphabet, Ali, Tencent, Goldman Sachs and others.
Although Intel is already the largest computer chip maker in the United States, it does not currently produce chips that manage communications over Ethernet. This chip technology is widely used to connect large computer and server networks. Currently, this network chip field is dominated by Broadcom.
The acquisition, Intel executive vice president Navin Shenoy, said that the data is designed to address the proliferation of data that supports the need for analytical computing power and the exchange of network systems in the data center.
Shenoy said the deal is expected to be completed in the third quarter, and he said he will continue to cut prices to achieve its value.
Barefoot's technology stands out from other Ethernet chips, thanks to the flexibility of the technology: customers can program the chip according to their specific needs for the chip, thereby improving the efficiency of the chip.
In recent months, Intel has a strong interest in investing in network technology.
Barefoot's agreement indicates that Intel CEO Bob Swan is willing to move Intel to an unfamiliar area in order to seek more revenue in the larger overall market.
As Intel fluctuates in its core chip business, Intel is trying to find new growth points. After buying a lot of chips last year, large cloud computing companies have been stagnating in buying new chips this year, which is why Intel’s data center chip sales fell for the first time in the first quarter. In April, Intel also revised its revenue this year from the previous forecast of $71.5 billion to $69 billion.