Pepsi sells Sun Chips and 7-Up.

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Fowler says that Intel will supply chips for Sun's emerging hardware products, but wouldn't reveal other partners.

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Reinhart, a former Motorola executive, was on the losing side of the processor wars in the 1980s and 1990s as he watched Intel's industry-standard chips beat out companies selling incompatible chips, like Sun Microsystems, ibm and Digital Equipment.

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In the past, Sun sold only proprietary boxes that included its own chips and Solaris, its own operating-system software.

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Intel already sells chips capable of simultaneous multi-threading, and Sun's UltraSparc IV chip, launched in February, incorporates both multiple cores and multi-threading.

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Yet Intel and Sun face a potential threat from the upstart Transmeta, whose chips run only 75% as fast but suck only 20% of the power.

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On Tuesday, Sun announced a new focus on using flash memory--the type of chips found in devices like iPods, USB thumb drives and some laptops--to store information in corporate data centers.

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One is the proliferating use of cheap servers powered by commodity chips--a trend that has made Dell four times bigger than Sun and has given Google a cost edge over its rivals.

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Sun has recently yielded to this juggernaut, selling cheaper servers running Linux software on Intel chips.

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Samsung Electronics, the world's largest producer of memory chips, closed its wafer-fabrication plant and gave its employees one week off to enjoy sun and sand.

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