Samsung working with IBM at Fishkill now?

[Brimstone]

I spoted this over at www.nvnews.net posted by MikeC.

SAN FRANCISCO, March 5 (Reuters) - South Korean technology company Samsung Electronics Co. Ltd. (KSE:005930.KS - News) will join a computer chip development project at an International Business Machines Corp. technology center in New York, the companies said on Friday.



Samsung, which sells computer memory chips and produces semiconductors for use in its own electronics, will join Singapore chip maker Chartered Semiconductor Manufacturing Ltd. (SES:CSMF.SI - News; NasdaqNM:CHRT - News) and German memory maker Infineon Technologies AG (XETRA:IFXGn.DE - News) in the partnership with IBM.

Samsung will also license chip-making technology from IBM, the companies said. No terms were disclosed, but an IBM spokesman said IBM has brought in $500 million since 2001 from foreign chip makers who paid to help fund technology development work at its East Fishkill, New York facility.

While Samsung is the largest memory chip maker, the licensing agreement focuses on technologies for high-definition televisions, mobile phones and other consumer electronics.

Microchip makers have increasingly allied with one another to develop the extraordinarily expensive processes by which chips are built with microscopically small features. Building chip features smaller than 90 nanometers has introduced especially daunting manufacturing problems.

The four companies will focus on building chips with features as small as 65 nanometers, or billionths of a meter, and later with features 45 nanometers in size.

While IBM builds chips for use in its own computers, most of its chips business involves manufacturing for other companies, including Apple Computer Inc. (NasdaqNM:AAPL - News), Nvidia Corp. (NasdaqNM:NVDA - News) and Qualcomm Inc. (NasdaqNM:QCOM - News). It is also working with Sony Corp. (Tokyo:6758.T - News) and Toshiba Corp. (Tokyo:6502.T - News) on a chip for the new Sony PlayStation.

Richard Doherty, the research director of Envisoneering Group, said the expanded partnership will help Samsung keep up with Moore's Law, an industry maxim that holds that the density of transistors on chips doubles every year or two as the industry invests in the latest production technology.

"They've got challenges to keep Moore's Law going," said Doherty. "Everybody needs double-digit acceleration on Moore's Law. There's no faster way to get that than the billions that IBM put into R&D."

One notable exception to the move toward alliances is Intel Corp. (NasdaqNM:INTC - News) The world's largest chip maker is also by far the biggest spender on chip-making equipment, and is notoriously protective of its manufacturing processes.

Doherty said the expanding IBM partnership suggests Intel may be on the wrong side of a trend.

"They can laugh it off, but even IBM's big enough to realize that while they're at the top of the patent pool, partnerships like this make everybody smarter," he said.

http://biz.yahoo.com/rc/040305/tech_samsung_ibm_3.html

If I recall correctly, analysts were speculating that Chartered Semiconductor could be Microsofts Fab partner a while back. Depending on what Samsung licensed from IBM, they might be a potential partner now. No matter what the deal is, it's certainly another feather in IBM's cap.


***
Edit
I found the Samsung Press Release

(Mar 05,2004 / SEC)
Samsung Electronics Joins IBM, Chartered, Infineon in Next-Generation Semiconductor Logic Process Development

East Fishkill, N.Y. and Seoul, Korea - March 5, 2004 - Samsung Electronics today is joining a strategic semiconductor technology development partnership with IBM, Chartered Semiconductor Manufacturing and Infineon. Initially, the four companies will focus on 65 nanometer (nm) technology and will extend, over time, to include 45 nm process development.

The technology alliance will reinforce the IBM technology-based design point for next-generation logic technologies, thus providing an industry-wide platform for CMOS logic processes.

Joint development takes place at IBM’s 300 mm Advanced Semiconductor Technology Center in East Fishkill, N.Y., which began operation in July of 2003. Each company will have the ability to implement the jointly developed processes in its own manufacturing facilities.

“Samsung is pleased to join this elite partnership, further enhancing technology and supporting services and accelerating market application of cutting edge technologies,†said Dr. Chang Gyu Hwang, President and CEO of Samsung Electronics’ Semiconductor Business, “This alliance is expected to create a technology platform for nano-scale CMOS logic processes, enabling customers to enjoy a broader offering of the next-generation logic process technologies.â€

A separate agreement with IBM will give Samsung license rights to 90nm CMOS logic technology. Samsung plans to introduce IBM’s proven logic technology to its highly integrated System-On-Chip (SOC) product line such as HD-TVs, DVDPs, and mobile applications. Based on Samsung’s SOC business infrastructure, the advanced logic technology will be available to Samsung’s internal and external customers, expanding IBM-based technology sourcing.

"The participation of Samsung, a worldwide technology leader, along with our current prestigious partners, makes IBM’s New York-based chip facility the worldwide center of expertise for silicon research and development,†said Dr. John E. Kelly III, senior vice president and group executive, Technology, IBM Systems and Technology Group. “With our existing partners, Chartered and Infineon, we welcome Samsung. Together we will create a global technology platform, providing clients with consistent chip making methods and multiple sources.â€


Samsung Contact: Sunghae Park 82 31 209 7037

IBM Contact: Carrie Altieri 845 892 5464

http://www.samsung.com/Products/Semiconductor/News/SystemLSI/SystemLSI_20040305_0000033546.htm

 

[cthellis42]

I'd be surprised if IBM's cap is big enough for all the plumage of late.