Network processor expert EZchip Semiconductor has signed a definitive agreement to acquire Tilera Corporation, a multi-core processor chip developer for data communication and networking equipments. EZchip is paying up to $130 million in cash for this purchase.
Through this acquisition, Ezchip said its total available market (TAM) going to be $2 billion covering NPUs, multi-core CPUs, smart network adapters and appliances, for the data-center and telecom markets.
Tilera has huge expertise in muticore processor world. Its technical achievement not turning into a successful business tells lot about importance of market over technology. Tilera's not so good market-performance indicates the multi-core alone not enough in processor market. Timing of their tech achievement and the end-application area may be also wrong.