IBM Microelectronics, the IBM Corp division that develops, manufactures and markets microelectronic components, is all set to go head-to-head against Intel Corp with the launch of the 6×86 processor. Designed by Richardson, Texas-based Cyrix Corp, and fabricated by IBM at the group’s Essex Junction, Vermont plant, the new chip has out-performed comparable Pentium processors on the Winstone 96 benchmark, and IBM intend to market the chip purely on a price versus performance basis. When compared like- for-like against Pentium processors, you get more for your money, said IBM’s European processor marketing manager Jim Dillon. The 6×86 microprocessors have cheekily been numbered against the Pentiums they claim to match. The IBM 6×86-P120+, 6×86-P133+, 6×86-P150 and the 6×86-P166 actually clock in at 100MHz, 110MHz, 120MHz and 133MHz respectively. The big news according to Dillon, is that the new chip will give customers a real alternative in the suites, mid-range and high-end desktop markets. IBM is intent on gaining market share, at the expense of Intel, which currently accounts for about 80% of the processor market. Dillon estimates sales of the 6×68 should start showing results by the fourth quarter. Cyrix has an $88m equipment leasing deal with IBM. IBM will take about 50% of whatever comes off the production line, but says the split is flexible. If Cyrix has difficulty shifting the units – and selling processors is not where its strengths traditionally lie – IBM said it can increase its quota. After a disappointing fourth quarter, Cyrix reported net losses of $10m against profits of $13m last year, on revenue off 47% to $39m, and is now betting its company on the success of its processor. It has even made a foray into the systems business with the launch of its first personal computers, manufactured by Electronic Data Systems Corp, under the same 6×86 name (CI No 2,886). The over-riding question within the IBM camp at the moment has to be – will Intel rise to the occasion?
