Intel said the acquisition would expand its line of communications products and the company's network processor line.
Last June, the company said it was abandoning I.B.M.'s Power PC processor line, which it had used for 14 years, as well as chips from its other major supplier, Freescale Semiconductor.
Philips has a TriMedia multimedia processor lined up against Teralogic.
Then he purchased WordPerfect's word processor line and Borland's spreadsheet.
It is now Intel's number two product after its processor line.
In July, the giant microprocessor manufacturer launched a new generation processor line that featured competitive prices and reduced power consumption.
Its Athlon processor is selling well, and its new Duron processor is set to challenge Intel's low-end Celeron processor line.
Rumors, some more reliable than others, have been flying about Prescott, the code name for the next anticipated revision to Intel's Pentium 4 processor line.
Intel says Haswell marks a "radical change" to its processor line-up, but it also highlights the continuation of a long-running business strategy.
There are some superficial similarities to the A4 system used by Apple, but really, the processor line is the only for-sure overlap.
