Intel, RSA to Develop Security Chip

SANTA CLARA —  Intel Corp., the world’s top computer chip maker, said it will work with a unit of Security Dynamics Technologies Inc. to develop chips that have built-in security capabilities intended to prevent fraud.

The agreement also allows the unit, RSA Data Security Inc., to sell kits to software developers that are customized for Intel’s planned security chips, the companies said. RSA expects to have the kits ready by the middle of the year. Officials at RSA weren’t immediately available for comment.

An Intel spokesman said the chips will be ready later this year.

The products will be geared toward taking advantage of the boom in electronic commerce, which requires encryption technology and other security measures to keep criminals from stealing credit card numbers and other personal information. Concern about security often is cited as a top reason more consumers aren’t shopping online.

San Mateo-based RSA is one of the country’s largest security-software makers. Security Dynamics is based in Bedford, Mass.

The Commerce Department has imposed limits on export of the most powerful encryption technology, fearing it could fall into the hands of criminals and terrorists, who would be able to send messages to one another that law enforcement authorities won’t be able to read.

The government has made some recent moves to relax the restrictions, which the high-tech industry has long protested.

One of the early companies to create hardware with security capabilities, Hewlett-Packard Co., said Monday that it has received approval from the Commerce Department to export its hardware-based VerSecure technology to nine additional countries, bringing the total to 17 countries representing more than 80% of Internet users worldwide.

Hewlett-Packard’s VerSecure program head Doug McGowan said the changing status of export laws and policies makes it “very challenging for manufacturers to design strong security into exportable products.”