To: engineer who wrote (38529 ) 8/23/1999 2:40:00 PM From: Ruffian Respond to of 152472
IBM-Siemens, Chips> BM to Make Computer Chips for Siemens Wireless Phone Equipment Armonk, New York, Aug. 23 (Bloomberg) -- International Business Machines Corp., the world's largest computer maker, said its growing chipmaking business won an order to make processors for Siemens AG's wireless phone equipment. Financial terms weren't disclosed. Siemens, Germany's No. 1 electronics and engineering company, will use IBM's silicon- germanium chips in base stations, which transmit a signal from a cell phone or relay tower to a land-based phone network. IBM entered the $2 billion radio-frequency market in October. The company claims its silicon-germanium chips provide a clearer signal, use less power, and are cheaper to make than gallium-arsenide chips used in most cell phones. IBM has signed contracts to make the chips for Qualcomm Inc., Nortel Networks Corp. and Alcatel SA, among others. ''This shows IBM building even more momentum'' for its chipmaking business, said Joyce Putscher, an analyst at Cahners In-Stat Group, a Scottsdale, Arizona-based high-technology research firm. IBM also will share its chip technology with Siemens, a switch in its strategy. For years, the Armonk, New York-based company guarded its breakthroughs as competitive advantages. Slowing computer sales make it harder for IBM to justify its $5.1 billion research and development budget without selling its technology to other companies. IBM shares rose 2 7/16 to 124 3/16 in late morning trading. Siemens rose 1.55 euros to 79.55 euros in German trading. Aug/23/1999 11:43 For more stories from Bloomberg News, click here. (C) Copyright 1999 Bloomberg L.P.