Feeds

IBM Micro at end of x.86 trail

Cyrix buys out Big Blue stock after fraught partnership ends

  • alert
  • submit to reddit

Providing a secure and efficient Helpdesk

No further production of x.86 clone chips from IBM Micro is likely, following the severing of ties between it and National Semiconductor/Cyrix, it has emerged. And Cyrix will now try to switch existing customers of 6x86 to its own products, according to sources close to the firm. The large sum of money paid by Cyrix to IBM, first exclusively reported here, does not include any patent cross licensing, the same sources said. Some of the $50 million or so IBM will receive, described in an official Cyrix statement as “the transfer of certain assets” relates to payment for existing IBM stock as well as .35 micron wafer processing equipment, the source added. The severing of ties between Cyrix and IBM Microelectronics will mean that the Big Blue 6x86 version of the processor is likely to disappear by year end, with a transition period where Cyrix talks to IBM customers. One source close to NatSemi said: “You’ll have to ask IBM about whether it will continue making x.86 chips after the end of the year, but clearly there’s one less x.86 competitor in the market.” Ever since the deal between Cyrix and IBM Microelectronics was set up, there has been constant bickering between the two companies. Big Blue undermined Cyrix margins and channel relations and also, at one point, claimed its version of the 6x86 chip was superior to the identical part from Cyrix. But although NatSemi-Cyrix has essentially severed the x.86 tie, it has not closed doors to overtures from Big Blue in the future, the source said. The same source added that Cyrix can make over 10 million x.86 parts per year at its South Portland fabrication plant, and will be able to triple that number when the ramp slopes right up. When NatSemi bought Cyrix last year, its primary goal was to cut out IBM Microelectronics from the loop. However, it is content to stay with Taiwanese foundry TSMC and has a good relationship with the firm, the source said. The charge NatSemi-Cyrix will now make is to made to cost of sales in Cyrix’s Q2 and will impact its gross margins, the sources claimed. This coming week, Cyrix is set to announce a major design win, the source said. ® Related stories Transmeta to use IBM fabs after Cyrix loss NatSemi to pay IBM Micro $55 million, now official IBM Micro to get big wedge from NatSemi IBM Micro to go slot one in 1999 IBM Micro in chicken and egg situation IBM Micro and Cyrix agreement takes further twist NatSemi boss courts Acer Computex 1998 coverage from The Register Click here for more stories

Providing a secure and efficient Helpdesk

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Special pleading against mass surveillance won't help anyone
Protecting journalists alone won't protect their sources
Big Content Australia just blew a big hole in its credibility
AHEDA's research on average content prices did not expose methodology, so appears less than rigourous
Vodafone to buy 140 Phones 4u stores from stricken retailer
887 jobs 'preserved' in the process, says administrator PwC
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.