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IBM microchip plant problems affect Apple

IBM’s microchip division is struggling with yield problems at its new manufacturing facility in East Fishkill, New York, where the company produces the PowerPC 970 and 970FX chips used in Apple’s Power Mac G5 and Xserve G5. The problems reportedly have to do with its 90-nanometer process technology for building chips with smaller features than the previous 0.13-micron process generation. As MacMinute reported last week, Apple blamed IBM during its earnings conference call for the shipping delays of the Xserve G5.

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