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To: shane forbes who wrote (7442)	10/27/1997 11:08:00 AM
From: shane forbes	Respond to of 25814

IBM commercializing the Cu thing: ARMONK, N.Y. -(Dow Jones)- International Business Machines Corp. said it will begin offering design kits for its copper-based microchip technology in January, confirming a report in Monday's Wall Street Journal. IBM is moving rapidly to commercialize and profit from its recent breakthrough in copper-based chip technology. Last month, IBM said it became the first company to successfully substitute copper for aluminum in making semiconductors, a vital breakthrough in making significantly faster and more powerful chips. At that time, it wasn't clear how soon IBM would be in a position to share the technology with other companies who want to use copper wiring on their chips. IBM said the kits include design tools and other services, giving other manufacturers data about IBM's process so that they can use their software tools and generate a chip design. IBM will then manufacture -- beginning in mid-to-late 1998 -- custom-designed chips for those customers wishing to utilize IBM's proprietary manufacturing process. IBM is initially targeting makers of computers, communication equipment and consumer electronics with custom chips called application-specific integrated circuits, or ASICs, that are designed for specialized tasks such as controlling digital cameras and manipulating three-dimensional graphics. ASICs are used in a wide variety of products ranging from electronic games to powerful telephone-switching equipment. Products with the new copper chip are expected to be on the market in early 1999. All the major chip manufacturers have been racing to develop a viable process that uses copper, a significantly better conductor of electric current than aluminum, which the industry has used for nearly 30 years. Until IBM reported its breakthrough last month, no one had figured out how to use copper in microscopic circuits, or how to use it without corrupting a chip's silicon wafer. While IBM is a major producer of chips -- most of which are used in its own computers -- in recent years, the company has become a big manufacturer of chips for several companies. As a result, IBM's Microelectronics business has seen chip sales to outsiders soar to about $3.5 billion last year, up from $700 million in 1993. IBM had revenue of $75.95 billion in 1996. Copyright (c) 1997 Dow Jones & Company, Inc. All Rights Reserved. Transmitted: 10/27/97 10:43 (L100ZT6J)