MICROELECTRONIC SYSTEMS NEWS

FILENUMBER: 1082 BEGIN_KEYWORDS IBM MOSIS CMOS FAB END_KEYWORDS DATE: October 2002 TITLE: IBM EXPANDS MOSIS ACCESS TO ITS CMOS FAB
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TITLE: IBM EXPANDS MOSIS ACCESS TO ITS CMOS FAB

IBM Microelectronics announced on 3 Oct 2002  that  it  plans  to
expand  MOSIS  access to its  CMOS  technologies,  including  its
0.13-  and  0.18-micron production  processes  with  copper  wire
technology,  for  use  in   the  Marina   Del  Rey,  Calif.-based
company's Multi-Project Wafer (MPW) services.

IBM Microelectronics also plans to  offer  MOSIS  access  to  its
0.25-micron  CMOS production process, which has been enhanced for
radio frequency  applications.  Low-volume  production  would  be
offered  through  MOSIS'  MPW  services.  IBM's silicon germanium
(SiGe) technology, which has been a part of  MPW  services  since
the  initiative  launched  last  year,  is  still  available, the
companies said.

The collaboration is  an  expansion  of  an  existing  initiative
designed  to  help  emerging  companies and universities that are
developing new chip designs. Most of these advanced chip  designs
don't   get   made   because  their  limited  quantity  makes  it
economically impractical. To solve this  problem,  IBM  partnered
with  MOSIS  in  March  2001  to provide SiGe wafer manufacturing
services to MOSIS.

MOSIS is an independent service organization that offers a single
interface  for  companies  and  universities  who  want  to share
overhead costs associated with the development and production  of
microchips.  Since  the  initiative  was  launched, more than 150
customers have used IBM's  SiGe  technology  through  MOSIS,  the
companies said.

"IBM has a comprehensive suite of foundry  services  for  a  wide
range of industry-standard technologies, including all the latest
semiconductor  production  processes,"   said   Kenneth   Torino,
director  of foundry products, IBM Microelectronics. "Through the
MPW initiative, the community  of  talented  chip  designers  who
normally  would  not  have  an  opportunity  to  have their chips
manufactured using IBM process  technologies  can  tap  into  our
expertise."

Under  the  MPW  initiative,  customers  share  development   and
manufacturing  expenses by submitting separate chip designs to be
consolidated and manufactured together on a single  wafer.  MOSIS
contracts  directly  with  customers  to  integrate multiple chip
designs  onto  a  single  mask  set  and  arrange  for  prototype
production   of  the  chips  at  IBM's  chip-making  facility  in
Burlington, VT.

Editor: The above announcement is posted at: IBM News

Technical information required for submitting designs: MOSIS-IBM

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IBM MICRO CUTS 1,500 WORKERS, ADDS DESIGN DIVISION

IBM CHANGES

AUSTIN,  Texas:   In  a  restructuring  intended  to   create   a
counterweight  to  Asia's  fast-growing  foundries,  IBM  Corp.'s
Microelectronics Division announced Tuesday (June 4) a major push
into  the  high-end  foundry  business, and said it would lay off
1,500 engineers and  technicians  from  its  older  manufacturing
operations.

The foundry push promises  to  heighten  competition  for  Taiwan
Semiconductor   Manufacturing  Co.  and  United  Microelectronics
Corp.,  which  have  rushed  to  bring  up  0.13-micron   process
technology  ahead  of other foundry players. IBM has manufactured
chips on a foundry basis for several years, and  counts  Qualcomm
Corp., Xilinx Inc. and others as major customers.

But until the current downturn, IBM had little capacity to devote
to  foundry  work  as  it  struggled  to  meet  demand  from ASIC
customers and to make chips for the  game  machines  of  Nintendo
Ltd.

That will change in early  August  when  IBM  brings  up  initial
manufacturing  at  its  first  300-mm wafer fabrication facility,
located at East Fishkill, N.Y.

In a telephone interview, Michael Mayer, general manager  of  IBM
Microelectronics,  said  that IBM is in some areas de-emphasizing
development of its own standard products which might compete with
those from leading-edge fabless companies.

Last year, IBM sold its optoelectronics  group  to  JDS  Uniphase
Corp.  and decided to cease further development of wireless chips
sets, power amplifiers and some other standard products.

"We have a three-pronged push. We want to continue  to  grow  our
ASIC  business,  center our standard product offerings around the
PowerPC, and really strengthen our  high-end  foundry  business,"
Mayer  said. "In foundry, we intend to concentrate on those high-
end customers who need the technology  leadership  that  IBM  can
provide them."

Michael Concannon was named vice president of IBM's newly  formed
foundry  and  manufacturing services business unit as part of the
restructuring.

Product development pared

Mayer declined to be specific about layoffs but said  they  would
include  some  development  groups  for  products  that are being
discontinued.

About 950 of the 1,500 workers affected by the layoffs  announced
Tuesday  are  manufacturing engineers and technicians who work in
Burlington, Vt. While they are  not  fab  workers,  most  of  the
affected employees support the aluminum-based manufacturing lines
there, Mayer said.

A smaller number of engineers will be laid off  from  development
groups  for products being discontinued. About 200 people at East
Fishkill and about 100 at the  company's  facility  in  Endicott,
N.Y.   are  also being cut. Others are dispersed throughout other
IBM sites.

The 1,500 employees who are losing their positions may apply  for
openings  elsewhere  in  the  company,  so  the  final  number of
reductions is expected to be less than 1,500,  an  IBM  spokesman
said.  After  the  layoffs,  the  microelectronics  division will
employ 19,000.

Mayer said he believes the 300-mm fab in East  Fishkill  has  the
world's  best  fab  control  and  automation technology. IBM also
believes it has a lead in combining copper interconnects  with  a
low-k  dielectrics  at  0.13-micron  design  rules. By early next
year, IBM is  expected  to  begin  offering  90-nanometer  (0.09-
micron) technology, though Mayer declined to say when the company
will start offering that next-generation process.

Mature view

IBM's new foundry focus was lacking  in  the  past,  Mayer  said.
"There  was  a  point in time where we tried to assess whether we
could penetrate the standard product areas, mainly in  networking
and  communications.  As we have matured our understanding of the
market, in the standard products area we want to  concentrate  on
PowerPC  and  related  product  areas like Infiniband and network
processing.

"Then what we want to do is be  a  major  player  as  a  high-end
foundry,  really  using  our process leadership and ride our core
competency   there,   partnering   with   leading-edge    fabless
companies," Mayer said.

The company's silicon germanium BiCMOS, and  silicon-on-insulator
(SOI)  technologies  will  be  included in the foundry effort, he
said.

IBM also announced Tuesday the formation  of  a  design  services
business  unit  within  the  overall  technology  group.  With an
initial 600 employees, the design  services  group  will  develop
systems  and board-level products for customers, and design chips
for customers of IBM Microelectronics'  ASIC  division.  It  will
also   provide   design,   test,  verification,  prototyping  and
manufacturing services for chips, boards and systems.

Employees from IBM's server and microelectronics  divisions  will
be  transferred  to the design services business unit, which will
be headed by Pat Toole, the former vice president  in  charge  of
IBM's customer-owned tooling manufacturing operations.

The moves come a day after IBM and Hitachi Ltd.  formally  agreed
to  a  joint  venture  that  will transfer much of IBM's magnetic
drive division to Hitachi. The Japanese company will pay  IBM  $2
billion  for its hard-disk drive assets, which were part of IBM's
technology group.

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