Hyundai servers succumb to Asian crisis

Hyundai's server manufacturing arm Axil will pull out of the market, following withdrawal of funds by its parent in the wake of the Asian currency crisis.

The future of its Crossbar multiprocessing architecture, licensed by Hewlett Packard and Data General, now depends on a proposed management buyout plan. There was also speculation that HP or DG would step in to buy up the company, gaining ownership of the Crossbar design, if the buyout fails.

Axil, which specialises in multiprocessing Intel-based machines, will axe all its staff except in service and support. It will fulfil orders to key customers until July and provide support for its Northbridge servers for some time. If the buyout succeeds, it will restart development and sales of Northbridge.

It was unclear whether Axil's OEM deals with HP and DG for Axil's Crossbar architecture, which enables the Intel Pentium Pro and Pentium II processors to scale up to eight-way machines. The three partners formed the Crossbar Coalition in March.

Axil managers are working with parent Hyundai on the buyout plan.

Hyundai also disclosed that it will cut its capital expenditures by 30 per cent next year to $4.5 billion.