[Am-info] Low-End Microelectronics Unit Chucked By IBM

[Fred A. Miller]

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Low-End Microelectronics Unit Chucked By IBM=20

IBM continues to reshape its microelectronics operations. The=20
company plans to sell its Mylex microelectronics business unit,=20
which primarily makes RAID controllers, to LSI Logic Corp. in an=20
all-cash deal. Neither company has disclosed the value of the=20
purchase, which is expected to close by Sept. 30.

In June, IBM said it was refocusing its microelectronics efforts=20
on high-end custom chip design and manufacturing as well as=20
technology design services. The Mylex unit, which made relatively=20
low-end RAID hardware, doesn't fit into those plans. LSI Logic,=20
maker of communications, consumer-electronics, and=20
network-storage chips, plans to use Mylex's controllers in=20
low-end chips and modular storage machines, says Tom Georgens,=20
president of LSI Logic Storage Systems.

LSI Logic says it will keep the Mylex hardware and software=20
engineers as well as its sales representatives. LSI will also get=20
Mylex customers, including IBM, NEC, and Fujitsu-Siemens.=20

IBM bought Mylex Corp. in 1999 for about $240 million and folded=20
it first into its storage-systems division and, later, its=20
microelectronics division. - Larry Greenemeier

For more, read:
Hitachi To Pay IBM $2B For Hard-Disk-Drive Business
http://update.informationweek.com/cgi-bin4/flo?y=3DeHul0Bce7K0V20Bdpf0Aa

Pressure's On For Multivendor Storage Management
http://update.informationweek.com/cgi-bin4/flo?y=3DeHul0Bce7K0V20Bezu0A1

- --=20
Fred A. Miller
Systems Administrator
Cornell Univ. Press Services
fm@cupserv.org, www.cupserv.org
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