NEW YORK--IBM Corp. has combined its loss-ridden semiconductor unit with its computer server group in an effort to "align" the businesses, according to a report from Reuters today (January 29, 2004).
Announced in an internal memo on Thursday, the combined unit is called the Systems and Technology Group, according to the report. The new unit will be co-headed by technology group manager John Kelly and systems group leader William Zeitler.
The move follows ongoing losses and management changes within IBM's chip unit, according to analysts. IBM has garnered several foundry customers, but the unit has yet to turn a profit, according to analysts.