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FTC Decision Means Brighter Future for Digital Equipment's Computer Chip.

Knight Ridder/Tribune Business News, April, 1998 by Muller, Joann

Knight Ridder/Tribune Business News

Apr. 24--Digital Equipment Corp.'s underdog computer chip, Alpha, got a huge boost yesterday from the Federal Trade Commission, which approved the sale of Digital's semiconductor operations in Hudson to giant Intel Corp.

As a condition for approving the $700 million deal, the government antitrust agency said Digital must license its 64-bit Alpha technology to two other companies, Samsung Electronics Co. Ltd. and Advanced Micro Devices Inc.

Digital also must begin the process of certifying IBM Corp. -- or another company approved by the FTC -- to manufacture the Alpha chip.

Both conditions are intended to ensure that Intel, already the world's dominant computer chip manufacturer, will not gain exclusive...

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