IBM, as its looks to a future without silicon chips, has announced a $3 billion investment over the next 5 years on semiconductors research and development to enable new forms of computing.
The move, which comes just a week before the second quarter earnings report, serves as a reminder for IBM’s commitment to its hardware businesses, and also reassure customers that the company will keep innovating ways to advance the technology, despite its sales of low-end server business to Lenovo.
Following the heavy investments in the Watson unit and businesses such as commerce and mobility, IBM is likely betting that the next decade will feature functional quantum and cognitive computers that will require more than conventional silicon chips.
IBM said that the investment will fund 2 phases – to tackle technical obstacles in scaling the circuitry on chips to less than 7 nanometers that are even more powerful, and to research and develop semiconductors that move beyond silicon out of alternative materials and technologies that consume less energy but boost computing speed.
Supratik Guha, director of physical sciences for IBM Research said that since 1940, the basic architecture has remain unchanged and that the kind of problems customers face today, makes the company feel that this is the right time to start researching and developing new forms of computing.
Tom Rosamilia, senior vice president for IBM’s Systems and Technology Group, said the company’s goal is to develop the building blocks for systems that are capable of processing vast amounts of data while consuming less power. He said: “If we don’t start inventing them now, we believe nobody will get there.”
The news of investment comes at the same time the company is said to be parting ways with the chip plants. The New York-based Company has reportedly been in talks with Globalfoundries Inc. over the sales of IBM factory in East Fishkill, NY, according to people familiar with the matter. However, both the companies have refused to comment on the matter.
