“Despite an apparent slowdown in the IC market, IBM Corp. plans to boost the wafer output within its 300-mm fab over the next quarter, according to the company on Monday (Oct. 18). IBM’s Microelectronics Group is also expected to show break-even results for the year, according to analysts,” Mark LaPedus reports for Silicon Strategies.
“IBM doubled the output within the 300-mm fab in the third quarter and has set plans to boost production by 40 percent in the fourth quarter, said Mark Loughridge, senior vice president and chief financial officer for the computer giant (Armonk, N.Y.) The company’s 300-mm fab is located in East Fishkill, New York,” LaPedus reports. “Although IBM is seeing ongoing demand in the foundry business, the company is still reportedly struggling with its fab yields. For months, the unit has struggled with chip yields in the 300-mm fab, a 130- and 90-nm plant.”
LaPedus reports, “Last week, Apple Computer Inc. reported stellar results despite availability problems with its 64-bit G5 processors… Used in Apple’s Mac-based computers, the 64-bit G5 processors are built on a foundry basis by IBM Corp.’s Microelectronics Group… During a conference call on Monday, however, Loughridge indicated that the chip unit is showing some improvement. ‘300-mm yields continue to improve,’ he said.”
Full article here.
MacDailyNews Take: Great news for Apple that IBM is getting handle on their fab issues. More G5s made more efficiently mean more supply for the increasing demand for the new iMac G5 and Power Mac lines. Apple looks to benefit from the increased availability.