Multi-million dollar manufacturing deal

IBM and Xilinx have announced a two-year, multi-million dollar agreement under which IBM will manufacture the Xilinx’ Virtex-II Pro semiconductor products.

IBM plans to manufacture the parts using its 0.13 and 0.10 micron copper-based chip-making technology.

This is the first time IBM will manufacture high-volume parts for a foundry customer using its most advanced processes, normally used in high-end microprocessors, custom chips and memory products. The products will be manufactured at IBM facilities in Burlington, VT and East Fishkill, NY.

The Virtex-II Pro products are the result of a collaborative design effort between the two companies, integrating IBM’s PowerPC microprocessor with Xilinx field programmable gate array (FPGA) technology to form a new type of hybrid chip for use in communications, storage, and consumer applications.

IBM and Xilinx originally announced their plans to develop a hybrid approach to developing custom chips, combining Xilinx FPGA and IBM PowerPC microprocessor technology in July, 2000.