Three of the biggest personal computer makers - Compaq, Hewlett-Packard and Gateway - and nine of their suppliers will invest $100 million (€110.36 million) to form an independent Internet marketplace for silicon chips, monitors and other PC parts.

Other members of the new San Francisco area Internet marketplace include chip-maker Advanced Micro Devices, contract manufacturers Solectron and SCI Systems, disk-drive maker Western Digital, Hitachi, Samsung, NEC, Quantum, and Infineon.

The computer companies are following similar moves by food groups (including Fyffes and Glanbia) and motor manufacturers and others who have recently formed electronic marketplaces in an effort to streamline their procurement systems and reduce costs through auctions, reverse auctions and other automation.

"This is an open high-tech exchange that will transform the way the industry optimises its supply chain," said HewlettPackard chief executive Ms Carly Fiorina, who initiated the alliance three weeks ago by calling Compaq's Mr Michael Capellas.