US anti-trust authorities have said Intel's US$420 million acquisition of Chips & Technologies, can proceed for now, though they will continue to scrutinise the transaction for anti-competitive effects.

After a seven-month review, the US Federal Trade Commission voted not to go to court and block the transaction at this time. Instead it took the unusual step of keeping the review open while letting the companies close the transaction.

"Because we have concerns about the impact of this transaction on competition in markets for certain computer components, we have chosen to continue the investigation into the lawfulness of the acquisition," the FTC said in a prepared statement.