It is expected that the deal will be concluded in the third quarter of 2011, though financial terms of the deal are not being disclosed.
Fulcrum Microsystems is responsible for designing ethernet switch silicon for data centre network providers.
According to Intel, as demand for data continues to increase, there is an increasing need for high-performance, low-latency network switches.
Kirk Skaugen, Intel vice-president and general manager of the Data Center Group, noted that Fulcrum’s chips will help Intel become a "comprehensive data centre provider that offers computing, storage and networking building blocks".
He added that Fulcrum's technology complements Intel's processors and ethernet controllers.
In other industry news, new research by iSuppli has suggested that China's fabless semiconductor market is set for substantial growth.
Analyst estimates suggest that by 2015, revenue in the market will have reached $10.7 billion.
This is up from $5.2 billion in 2010, which was a rise of 23.6 per cent from the $4.2 billion revenue recorded the previous year.
Posted by Simon Jones
