Philips Semiconductors Forms VPN Unit

Philips Semiconductors, a division of Philips Electronics NV, today announced the formation of a new networking unit focused on the VPN (virtual private network) market.

Philips aims to carve out a niche for the unit with security chips that combine the company's expertise in silicon and software, the company said in a statement.

In related news, Philips Semiconductors at the RSA Security show held in San Jose, California, today will unveil the VMS747 Security Processor targeted at the VPN market and other applications demanding a high level of security, the company said.

The VMS747 was designed to be a cost-effective, single-chip security processor incorporating a range of features from bulk data encryption and public key acceleration to random number generation and battery-backed memory, Philips said.

Philips Semiconductors was the world's eighth largest chip supplier in revenue terms in 1999, according to estimates by market researcher Dataquest Inc. [See "Global Chip Market Growth Back to Double Digits," Jan. 6.]Philips Semiconductors, in Eindhoven, the Netherlands, can be reached via the Web at

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