Intel to Buy Shares of Chip Maker

Intel Corp. agreed to invest about $100 million in memory-chip maker Elpida Memory Inc., helping to ensure a supply of high-end memory that works with Intel processors.

Intel will buy an unspecified number of nonvoting shares by the end of the year, an Elpida spokesman said. Elpida, a venture between Tokyo-based NEC Corp. and Hitachi Ltd., will use the money to boost production at a chip factory in Hiroshima.

Intel, based in Santa Clara, Calif., is investing in memory-chip makers to ensure technology in the devices is compatible with its Pentium and Itanium processors.

Intel shares rose 72 cents to $21.10 on Nasdaq.

From Bloomberg News