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Chip makers to collaborate on next-generation chips

A group of seven leading chip makers, including IBM, AMD and Toshiba, have formed an alliance in order to cut the costs of producing the next generation of products.
The chips that they will be working together to develop will have transistors that are 32 billionths of a metre wide.
The smaller the transistors the greater the number that can be built into chips, meaning they can offer faster processing power.

These new chips could be used to power a wide range of products from graphics cards to games consoles.

However as the process is very expensive the chip makers have clubbed together in order to bring the cost down.

The members of the collaboration will work alongside each other to design, develop and produce the chips until 2010.

Malcolm Penn, an analyst for Future Horizons, described the arrangements as "pre-competitive collaboration".

The largest chip manufacturer in the world, Intel, is not part of the alliance but Mr Penn does not believe this is a major issue for the producers.

"Intel is in a very focused market place; it really only makes chips for PCs. It's a contained market with very, very little competition so Intel's absence in this alliance is not important," he commented.

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<a href="http://www.pulsewebhosting.com/news/chip-makers-to-collaborate-on-next-generation-chips-/158/" title="Chip makers to collaborate on next-generation chips ">Chip makers to collaborate on next-generation chips </a> Published Date: 2007-12-19 10:20:03

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