Intel buys into SDN chips with Axxia acquisition

Semiconductor firm Avago Technologies has struck a deal to sell on a networking business to Intel in an almost back to back transaction. The deal in question will see the US chip firm pick up LSI’s Axxia Networking Business and related assets for $650m in cash.

Axxia closed the acquisition of LSI Corporation, which designs semiconductors and software that accelerate storage and networking in datacenters, mobile networks and client computing just a few months ago.

“LSI’s Axxia Networking Business is being divested from Avago following the recent completion of Avago’s acquisition of LSI. The Axxia Networking Business generated revenues of $113 million in calendar 2013 and employs approximately 650 people,” the company said.

The move will give Intel more strength in the datacentre networking space. LSI’s Axxia 4500, the company’s first ARM technology-based communication processor, features a Deep Packet Inspection (DPI) engine that provides improved Software-Defined Networks (SDN) controller traffic inspection, efficiency of network management, QoS, security and other network functions.