Acer and IBM in chip joint venture

Acer and IBM in chip joint venture
Tom Foremski
Acer is striving to lessen its reliance on DRAM sales and has entered into an agreement with IBM to pursue more profitable chip markets.
The Taiwan based firm’s chip subsidiary, Acer Semicon, will use IBM logic chip technology and designs to manufacture system chip products in its fabs using a 0.25-micron process.
The first chips from the joint venture will appear in the first quarter of 1999. It should provide Acer with a line of chip products with decent profit margins compared to its money losing DRAM business. Earlier this year Acer bought out Texas Instruments’ share in a DRAM fab joint venture and said it will convert the fab to manufacturing other types of chips.
Acer says it has no intention of leaving the DRAM market, unlike Texas Instruments, and says it wants to be in a good position for when DRAM prices rebound which may not be until the next century.

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