Feeds

Gerstner dodges questions on IT economy

New IBM chip plant more important

  • alert
  • submit to reddit

Top three mobile application threats

Big Blue's big cheese Lou Gerstner dodged questions on the state of the IT economy today while trying to promote his company's latest venture.

The CEO and chairman of IBM stood in front of the stars and stripes in the State of New York Executive Chamber office of Governor George Pataki. He waxed lyrical on the PC vendor's plans for a $2.5 billion chip plant in upstate New York, as reported here earlier.

But after the 15-minute announcement to journalists he was asked about the current state of IT share prices on the stock market. How could he reassure investors that all was well?

Gerstner refused to comment, saying he was only at the conference to talk about the plant announcement.

The question was especially relevant as IBM's share price dropped $3.19 today to $114.75. And Big Blue is due to record its Q3 results on October 17 amid a plethora of profit warnings from rivals including Dell and Intel.

What did emerge is that IBM's 300mm chip plant will be constructed inside its old factory, which made chips on smaller wafers from 1985 to 1993. And incentives from New York State totalling $475 million - including wage tax credit, investment tax credit, real property tax credit and sales tax exemptions - helped twist Big Blue's arm not to build the factory elsewhere. The plant will be able to operate virtually tax free for up to ten years, according to a statement from Governor Pataki's office. ®

Related Stories

IBM builds $2.5b chip plant in New York
IBM in legal-stew over re-branded servers
IBM spends $65m on European Web consultancy
IBM's Olympic brand madness

3 Big data security analytics techniques

More from The Register

next story
Sorry London, Europe's top tech city is Munich
New 'Atlas of ICT Activity' finds innovation isn't happening at Silicon Roundabout
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
prev story

Whitepapers

Designing a defence for mobile apps
In this whitepaper learn the various considerations for defending mobile applications; from the mobile application architecture itself to the myriad testing technologies needed to properly assess mobile applications risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.