IBM mulls AMD investment

IBM mulls AMD investment
Tom Foremski
IBM is reported to have made, or be considering, an investment in Advanced Micro Devices (AMD) which would help the troubled chip maker re-establish itself as a major vendor of Intel compatible microprocessors.
According to a report by semiconductor analyst Ashok Kumar at investment bank Piper Jaffray, IBM is investing in AMD, and CEO Jerry Sanders is preparing to leave the top spot and is grooming AMD chief technology officer Atiq Raza as his successor.
AMD is scheduled to report on progress in its K6 microprocessor production yields this week. Low yields have led to problems for AMD and it has contracted with IBM to provide foundry services for the K6.
An IBM investment in AMD would help IBM in establishing itself as a major competitor to Intel in the fast growing low-end microprocessor market. IBM has deals to produce Intel compatible microprocessors for IDT and with National Semiconductor for its Cyrix chips.

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