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Strategies & Market Trends : Graham and Doddsville -- Value Investing In The New Era

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To: porcupine --''''> who wrote (709)9/2/1998 10:33:00 AM
From: porcupine --''''>  Read Replies (3) of 1722
 
IBM ships first copper computer chips, sees wide use

By Eric Auchard
NEW YORK, Aug 31 (Reuters) - The world's first commercial
computer chips wired with copper instead of aluminum will begin
shipping on Tuesday according to IBM , which plans to market the
faster, more efficient chips for use in a wide range of computers
and consumer electronics.
The world's largest computer maker said it would begin
shipping its first copper-based microprocessors, including a
PowerPC 740/750 model operating at 400 megahertz. The chips are
designed for use in both desktop and mobile computers.
Industry analysts said Apple Computer Inc would
use IBM's new Power PC microprocessors as the basis for
computers yet to be announced. Apple did not immediately return
calls seeking comment on its plans.
IBM has been engaged in a decade-long industry race to
create the first generation of copper-wired semiconductors,
which can deliver improved performance and reduced power
consumption compared to existing aluminum-wired chips. As
engineers have packed more performance onto smaller devices, they
have drawn closer to size and speed limits imposed by aluminum
wires.
"IBM is first into the market with any kind of credible
copper manufacturing technology," said Dan Hutcheson, president
of VLSI Research, a Silicon Valley semiconductor market research
firm.
However, Hutcheson noted that several semiconductor rivals
were working to develop copper-based chips of their own,
including Japan's Hitachi Ltd. <6501.T> and U.S. microprocessor
giant Intel Corp.
IBM said it also planned on Tuesday to outline its plans to
incorporate copper chip technology into its flagship mainframe
computer, minicomputer and workstation lines. It said it planned
prototype machines for later this year, with production-ready
systems due in 1999.
IBM also said it planned to broaden the use of copper in the
computer market by using its semiconductor foundries to produce
copper chips for other companies.
The company said it planned to offer Complementary Metal
Oxide Semiconductors (CMOS) with transistors as small as 0.18
microns. It said prototypes were due in the second quarter of
1999, with commercial production slated for the first quarter of
2000.
In addition, IBM also will announce on Tuesday the
availability of the fastest embedded processor on the market, a
400 megahertz PowerPC chip.
Embedded processors are used to control the functions of a
variety of equipment including printers, network routers and an
emerging class of consumer electronics such as digital cameras,
cellular phones and digital cable TV set-top receivers.
While designers consider aluminum easier to work with than
copper, aluminum is a relatively poor conductor of electricity.
As a result, in extremely small configurations, it cannot deliver
sufficient power to the transistors.
Scientists looked to copper, a superior conductor, as a
potential savior but until recently it remained an elusive one
because it was difficult to work with in small dimensions and
could corrupt the silicon transistors in a chip.
IBM said its new Power PC microprocessors are a
demonstration of the potential for copper technology to
increase performance of existing chips.
It said the PowerPC 750 chip was created as a standard
aluminum design operating at up to 300 megahertz.
By applying IBM's copper manufacturing process to what is
essentially the same chip, the company said it can now produce
semiconductors featuring speeds of at least 400 megahertz -- a
33-percent speed improvement for the same chip.
((-- New York bureau 212-859-1840))
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