Establishment of Alpha Processor Inc.

Alpha Processor Inc. (API) was established as a joint venture between Samsung and Compaq to penetrate the high-end microprocessor market. This collaboration was primarily focused on the production of DEC Alpha CPUs, which were known for their advanced performance capabilities. The establishment of API marked a strategic move for Samsung, aiming to diversify its portfolio beyond memory chips and enhance its presence in the semiconductor industry. The joint venture involved a substantial investment of $500 million from both companies, reflecting their commitment to developing competitive microprocessor technology. This investment was intended to leverage the strengths of both partners, combining Samsung's manufacturing expertise with Compaq's market knowledge and technological resources. The formation of Alpha Processor Inc. not only aimed to capture a share of the growing microprocessor market but also to foster innovation in chip design and production processes. The venture positioned Samsung to compete more effectively against established players in the semiconductor field, thereby contributing to the overall growth of its non-memory chip business.