Intel To Invest $100M In Samsung

Intel plans to invest $100 million in Korean electronicsgiant Samsung Electronics. The investment, in the form ofconvertible bonds, will be used by Samsung to buildfabrication plants for the next generation of memory chips,known as Direct RDRAM.

Intel-based PCs will begin using the faster chips by themiddle of this year. Intel views the new technology ascritical for the PC's memory to keep pace with fastermicroprocessors. Intel last year made a similar investmentin Micron Technology, another memory-chip vendor.

Intel's Samsung investment will be convertible to commonstock representing ownership of about 1% of the company,which had $17 billion in 1998 revenue. The investment,slated to close in February, must be approved by bothcompanies' boards of directors and the Korean government.