NEC, Intel sign server system alliance

TOKYO: Japan's largest personal computer maker NEC Corp said on Wednesday it

and Intel Corp., the world's largest semiconductor maker, have agreed to expand

cooperation in the computer server field.

The alliance, which includes product planning and development of new server

system architecture for Intel-based server boards and systems, is aimed at

reducing costs and development time, NEC said in a statement.

Under an existing relationship, NEC has been supplying the motherboard for

Intel-based servers. The new agreement will extend that relationship to the

development and manufacturing area, enabling each company to offer a wider range

of cost-competitive server products to customers, it added.

The move reflects increased usage of the servers in recent years, from use in

general purpose applications to use in complex applications to power the

explosive Internet economy.

NEC shares showed little reaction to the news, closing at 2,795 yen, up 1.82

per cent.

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