Will IBM's splurge on sledding and skating pay off?

Article Abstract:

IBM will invest about $100 million for the winter Olympics, and some wonder if the computer giant will benefit in the long run. More than 800 company employees are installing 5,000 computers for the 17-day event in Nagano, Japan. The IBM systems will handle the entire process that ranges from giant-slalom scores to e-mail in 10 languages. Parts of the IBM investment include a $40 million fee to serve as an Olympics 'partner' at Nagano and at the 2000 summer Olympics in Sydney, as well as millions in advertising its role. IBM warned in Jan 1998 that the Olympics, plus Asian business problems, would dampen profits in the 1st qtr 1998. The company hopes its Olympics performance will yield future product orders by demonstrating practical usage of its products. An IBM systems failure at the Atlanta summer games generated the wrong scores for reporters and fans, resulting in negative press reports.

Electronic computers, Electronic Computer Manufacturing, Computers & Auxiliary Equip, Computer industry, Company investment, Investments, 1998 AD, Winter Olympics

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IBM to build computer-chip facility; credit unit to move to old headquarters

Article Abstract:

IBM, investing heavily in next-generation chip manufacturing technologies, will construct a $700 million advanced computer chip development facility in East Fishkill, NY. The company also is ready to announce that it will spend $10 million to renovate its old headquarters building to house its IBM Credit subsidiary. About 500 new jobs will result from the two separate moves. The IBM testbed facility will start a 12-inch wafer conversion, which the company expects to hold 2.5 times more chips than its eight-inch wafers. Production costs will be only about 1.7 times more expensive, which IBM said could allow it to outperform competitors. IBM's first project at the facility is expected to consist of developing 1GB DRAMs. The 400-employee facility will become fully operational in late 1999. IBM has received no bids on its 420,000-sq-ft original headquarters since putting it up for sale in 1995.

Special industry machinery, not elsewhere classified, Semiconductor Production Equip, Semiconductor Machinery Manufacturing, Planning, Semiconductor production equipment industry, Semiconductor production equipment, Growth, Company growth

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