IBM targets $500 million in chip sales to outsiders, reversing longtime ban

Article Abstract:

IBM will sell its integrated circuits on the open market and license its chip technology to competitors in order to bring in a minimum of $500 million in new annual revenue. The company is reversing its traditional ban on giving outsiders access to IBM chip technology as part of an effort to recover from its current slump. IBM is the world's largest semiconductor maker but has until now kept all its chips for use in its own products. The company should also recoup some of its tremendous investment into semiconductor technology through licensing deals made with a number of companies, including Motorola Inc. IBM may benefit considerably from its new policy, but analysts point out that IBM has no experience in the highly competitive semiconductor industry and that rival companies may now find ways to sell IBM technology at a lower price. IBM has also created a corporate training subsidiary called Skill Dynamics to educate IBM customers about its products.

Semiconductors and related devices, Semiconductor industry, Integrated circuits, Marketing, IBM, Integrated circuit fabrication, Strategic Planning, Licensing, Policy, Market Entry, Subsidiary Company

---

Heirs apparent at IBM share low-key, smooth-gliding style

Article Abstract:

IBM's current chairman, John Akers, has appointed two solid company men to the corporations's powerful management committee, a strong sign that he considers them as leading candidates for his job when he steps down. The two heirs-apparent are quite similar. Both Robert J. LaBant, 47, IBM's top US salesman, and Ned C. Lautenbach, 48, the chief of IBM's Asian operations, are low-key, highly traditional executives who were raised in Ohio. LaBant joined IBM as a sales trainee after graduating from Kent Stae University, and Lautenbach joined IBM as a junior marketer after graduating from the University of Cincinnati. Lautenbach is viewed as the more cerebral of the two and obsessed with quantifying performance, while LaBant is viewed as the better public figure. Given IBM's troubles, Akers may not get a chance to choose his successor.

Officials and employees, Computer industry, Management Style, Chairmen, Lautenbach, Ned, LaBant, Robert

---

Similar abstracts:

• Abstracts: MCI posts $391 million loss on charge for restructuring, with revenue strong. AT&T posts loss of $2.68 billion; quarter's deficit tied to revamping costs; some areas improve
• Abstracts: Should we consolidate finance subsidiaries? Accounting for interest rate swaps. Accounting for deferred charges - Is more guidance needed?
• Abstracts: When you're "one-up" in the family firm. Valuing a family firm's uniqueness. Creating a prisoner in your family business
• Abstracts: PictureTel agrees with analysts on 4th-period net. Boston Technology expects to post profit for 2nd quarter after year-earlier loss
• Abstracts: Microsoft profit soars 58% on strength of Windows 95; fiscal 1st-quarter results top estimates; doubts on system's debut ease

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.