Xircom Inc. in Thousand Oaks plans to use its new relationship with computer-chip powerhouse Intel Corp. to develop products that challenge its biggest competitor in the Ethernet communications market, Chairman Dirk Gates said.
Last month, Intel bought a 15% stake in Xircom in an effort to boost its share of the networking market, especially in the laptop business.
Together the companies plan to develop connection cards that will tap the rapidly growing Ethernet market, which connects laptop personal computers to each other, to networks and to the Internet, the Xircom chairman said.
"Ninety percent of our revenue comes from connecting notebooks to networks," Gates said at a recent forum. Since sales of laptop personal computers "are still going gangbusters," major gains are expected from selling those connectivity products, he said.