IBM and Infineon Technologies in logic chip joint venture

IBM and Infineon Technologies in logic chip joint venture
Tom Foremski
IBM says it has reached an agreement with Siemens chip subsidiary Infineon Technologies to establish a joint venture near Paris to produce logic chips.
The two companies will invest about $500 million and the deal formalises a previous arrangement to set up chip production facilities. But the arrangement could lead to possible layoffs among 2,800 IBM staff working at a current IBM fab. The joint venture is expected to employ about 1600 of the IBM staff.
Separately, Infineon said it is one of the first companies to begin shipping mass produced 256 MB SDRAMs in PC66, PC100 and PC133 versions.
“We have made the 256M device our benchmark for our worldwide engineering and production set up,” said Andreas von Zitzewitz, COO of Infineon Technologies. “The device is ready and is again one of the smallest in the industry. We expect to ship several million 256M SDRAMs in 1999.”

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