IBM and Siemens AG yesterday announced that they would collaborate on the development of next-generation-but-one 64-bit dynamic memory chips, and may carry on to following generations. Siemens got into the leading edge memory chip business by licensing 1M-bit and 4M-bit designs from Toshiba Corp. Under the agreement with IBM, development costs are to be shared equally by the pair. Separately, IBM told Electronic News that it is phasing out its captive production of 8 silicon wafers – the crystalline substrates on which it builds its chips – and will in future buy the wafers in. It wants to sell the wafer manufacturing equipment installed at its East Fishkill base ending 20 years of wafer-making.