Intel to Acquire Fulcrum Microsystems for Undisclosed Amount

Chip giant Intel recently announced it signed a definitive agreement to acquire Fulcrum Microsystems, a fabless semiconductor company that designs Ethernet switch silicon for data center network providers.

The company was founded in 1999 and it specializes in designing integrated, standards-based 10GbE and 40 Gigabit Ethernet (40GbE) chips.

These are used in switches and other similar networking equipment that require low latency and workload balancing capabilities while also providing superior network speeds and a high-energy efficiency.

According to Intel, 10 Gigabit Ethernet (10GbE) networks are one of the fastest-growing market segments in the data center today.

As demand for data continues to increase, there is a growing need for high-performance, low-latency network switches to support evolving cloud architectures and Fulcrum should help Intel get an important share out of this market.

“Intel is transforming from a leading server technology company to a comprehensive data center provider that offers computing, storage and networking building blocks,” said Kirk Skaugen, Intel vice president and general manager, Data Center Group.

“Fulcrum Microsystems’ switch silicon, already recognized for high performance and low latency, complements Intel’s leading processors and Ethernet controllers, and will deliver our customers new levels of performance and energy efficiency while improving their economics of cloud service delivery,” concluded the company's rep.

Additional terms of the transaction were not disclosed. The agreement is subject to the approval of Fulcrum Microsystems shareholders, regulatory approval and satisfaction of customary closing conditions, The transaction is expected to close in the third quarter of 2011.

Fulcrum is best known for its clockless 10 Gigabit Ethernet and 40 Gigabit Ethernet chips, that come without a central clock enabling them to consume less power while performing at gigahertz performance.