IBM’s new US$3 billion microchip factory, which produces the PowerPC G5 for Apple, was “supposed to bring the company efficiency and profit” but is instead giving the company “a headache,” according to Reuters. “Demonstrating the risk of huge investments in advanced chip-making tools, International Business Machines Corp. (IBM) on Wednesday cited production problems at the gleaming chip plant in East Fishkill, New York as a reason why its microchip business would lose money this year. The disappointing start at the IBM plant is likely to reignite debate about whether IBM should be in the business of making semiconductors for other companies.”
