As part of the exclusive licensing deal, Alliance has also acquired the existing sublicenses previously granted by API. Concord, Mass.-based API was one of the pioneers and developers of HyperTransport technology, which is being promoted by Advanced Micro Devices Inc. as a high-speed chip-to-chip communications link inside new 64-bit microprocessor-based systems.

The exclusive license will allow Alliance to be the sole source for API's current products. It will also allow Alliance to sub-license the HyperTransport technology to third parties.

Alliance has set up an operation to propel the technology in the market. Alliance Ventures, the investment arm of Alliance, has transferred its majority of interest in SiPackets Inc., to Alliance.

SiPackets will assimilate the API products and drive the product roadmap. Alliance intends to operate SiPackets as a majority-owned subsidiary.

"The licensing of API Networks' products and technology, along with API customers and licenses, is the next major step towards Alliance's goal of expansion beyond our core memory business," said N.D. Reddy, chairman, president and CEO of Alliance.

API--formerly known as Alpha Processor Inc.--was dealt a major blow last summer, when Intel Corp. announced an agreement to take over Compaq Computer Corp.'s 64-bit Alpha processor technology. Originally funded by Houston-based Compaq and South Korea's Samsung Electronics Co. Ltd., API had been developing Alpha-based chips and systems.