The Strategist

Intel buys Barefoot Networks to compete with Broadcom

06/12/2019 - 15:37

American Intel has agreed to buy a startup Barefoot Networks in order to expand the scale of its network technology and better compete with Broadcom, said the IT giant.

Although Intel is the largest manufacturer of computer chips in the United States, the company has not yet released chips that support data transmission over Ethernet, a widely used technology for connecting computers and servers. Broadcom dominates this arena, according to The Wall Street Journal.

Intel executive vice president Navin Shenoy wrote on the chipmaker’s official blog that the acquisition of Barefoot Networks, which manufactures processors for Ethernet switches and network equipment, aims to solve the huge amount of data that requires computing power for analysis and network systems for sharing them in data centers.

Barefoot Networks will be "an excellent addition to our proposals for connecting devices," he said, adding that the purchase is expected to be completed in the third quarter. The amount of the transaction is not disclosed.

Intel shares rise in price by 2.5% during the auction before the official opening of the exchange session on Tuesday. Since the beginning of the year, the company's capitalization has decreased by 0.3%, to $ 209.5 billion.