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NatSemi and IBM pull out of chip agreement

By Tony Hallett

Published: 28 September 1998 12:26 BST

National Semiconductor (NatSemi) and IBM have terminated their semiconductor cross-marketing and manufacturing agreement.

IBM will stop selling 6x86 processors identical in design to MII - previously 6x86MX - chips made by NatSemi's Cyrix subsidiary. At the same time, NatSemi will stop using IBM's manufacturing facilities, and instead make Cyrix branded processors at its own fabrication plant in Maine, France.

The move is expected to save NatSemi money and take IBM out of the x86 PC processor market. As part of the termination of the relationship, IBM will keep a quantity of chips and NatSemi will take a one-time charge of around $50m.

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