SANTA CLARA, Calif. -- In an apparent move to cut costs, Hewlett-Packard Co. plans to transfer the engineers from its server-oriented chip set group to Intel Corp.
Under the terms of the deal, Intel will hire under 100 engineers from HP's Cupertino Systems Lab. Based in Cupertino, Calif., the engineers in the lab develops chip sets for HP's computers based on its proprietary PA-RISC processor.
The deal with Intel does not involve HP's chip set technology. It's unclear if HP has scrapped its server-oriented chip set business.
The HP engineers will be transferred to Intel's Enterprise Platform Group, which develops Intel's server-oriented microprocessor lines, according to a spokesman for Santa Clara, Calif.-based chip maker. The HP engineers will work on server-oriented chip products, including the 64-bit Itanium processor and future product lines, the spokesman said.
"This is a way to add more expertise for Intel," the spokesman said.
