IBM, AMD to co-develop next-gen chips

SAN FRANCISCO: IBM and Advanced Micro Devices Inc. have stated that they would work together to develop next-generation microprocessor technologies in an attempt to rival and market leader, Intel Corp.

The alliance will run for 3 years with the option of an extension, said Bill Siegle, Chief Scientist and senior Vice President of AMD's technology operations. The companies will work to develop technology to make extremely small transistors, the on-off switches in microprocessors -- that can be packed into faster and more efficient chips and manufactured more cheaply.

Specifically, AMD and IBM said they would target widths of 65 and 45 nanometers. By comparison, AMD 90-nanometer products are slated for release in the first half of next year. Intel is expected to release a version of its Pentium 4 processor built on 90-nanometer technology in the second half of this year.

At the same time, AMD and IBM will work toward building chips on 300-millimeter silicon wafers, a larger size than AMD currently uses and a step that promises cost savings. Both IBM and Intel already have production plants that use 300- millimeter wafers compared with the 200-millimeter wafers used by AMD's main fabrication plant.

IBM and AMD said they expect first products based on the new 65-nanometer technologies to appear in 2005. Eventually, more than 50 AMD engineers will be working at IBM's plant on the project, an AMD spokesman said. An IBM spokesman declined to say how many IBM people would be involved.

In November, IBM said it would jointly develop chip technology and share manufacturing facilities with Chartered Semiconductor Manufacturing of Singapore.