The acquisition is expected to add to Intel's design capabilities for advanced communications silicon on a global basis. The purchase also marks the 11th networking and communications related acquisition announced by Intel since January last.

Thinkit specialises in advanced design for chips used in networking and communications products such as switches and routers. Software & Silicon Systems group designs communications silicon for Intel's Level One Communications subsidiary. When the acquisition is completed, Intel will operate communications chip design facilities at more than a dozen sites worldwide.

The purchase complements Intel's efforts to provide advanced silicon components for networking and communications applications. In September, the company had announced the Intel Internet Exchange (IX) architecture, a comprehensive `blueprint' for building next generation networking equipment.

The Intel IX architecture uses programmable silicon to allow new functions and features to be added to networking equipment quickly and cost effectively. ``The acquisition of Thinkit further expands the worldwide reach of Intel's silicon design capabilities for networking and communications," said Intel Network Communications Group vice-president and general manager Mark Christensen.

``Adding this new silicon design expertise provides Intel with additional resources for advancing the Intel Internet Exchange architecture. This, in turn, will help enable networking and communications systems companies to build faster, more intelligent networks,'' he said.

``Chips for networking and communication infrastructure are pushing the edge of silicon technology and tools,'' according to Software & Silicon Systems president and managing director Sridhar Mathani.