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Neo10
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re: What do IBM layoffs mean for New York's chip initiative?
Neo10   6/19/2013 5:23:28 AM
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IBM aims to become a pure software systems company, so they are jettisoning the hardware related domains gradually.

m.cheah
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re: What do IBM layoffs mean for New York's chip initiative?
m.cheah   6/18/2013 10:09:27 PM
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But tech jobs also get shipped abroad to places with more regulation and sometimes higher corporate taxes. Certainly, many of the countries with growing semiconductor industries rank lower than the U.S. in the World Bank's "Doing Business" report. A personal opinion, but because political opinions about small government attract a lot more airplay in America than elsewhere, a perception of impenetrable bureaucracy tends to develop amongst Americans more frequently than for other people, but really, American regulations are relatively lax compared to many other countries.

pinhead1
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re: What do IBM layoffs mean for New York's chip initiative?
pinhead1   6/18/2013 9:08:18 PM
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I don't think that was ever really the plan for the Fishkill fab, though. I think from the outset, it was there to supply IBM's internal needs, and all of the foundry/partnering activities were just to shore up the finances.

luting
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CEO
re: What do IBM layoffs mean for New York's chip initiative?
luting   6/18/2013 8:32:16 PM
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I think that is pretty much what is expected, soon or late. There is no way IBM able to compete with TSMC and Samsung in foundry business.

smartbost
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re: What do IBM layoffs mean for New York's chip initiative?
smartbost   6/18/2013 7:51:03 PM
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With IBM exit, there will be even less Industrial R&D in semiconductors. It is a sad day, in my opinion.

ssliva
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Freelancer
re: What do IBM layoffs mean for New York's chip initiative?
ssliva   6/18/2013 4:25:46 PM
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IBM doesn't invest in businesses that don't help increase EPS. I do think the new CEO might be less inclined to look favorably on peripheral businesses that support the big iron cash cow, though. That could hurt over the long run.

SmokeNoMore
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re: What do IBM layoffs mean for New York's chip initiative?
SmokeNoMore   6/18/2013 4:14:42 PM
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IBM is exiting the US semiconductor business because the profit margins are too "low". The company enjoys higher profit margins on services. The foundry boys thought they could sustain themselves by producing one-hit-wonders like game console chips. When that business dried up - they were toast. They'll probably continue to produce ASICs but the ASIC services will not be centered in the USA.

Bond Number
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re: What do IBM layoffs mean for New York's chip initiative?
Bond Number   6/18/2013 2:15:59 PM
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Didnt know "buddy" was considered name calling. Please demonstrate where lower corporate taxes was the major driving force behind long term growth. I never said that lower corporate taxes are a bad thing. I just said that it is not the leading cause, and it alone can not change the long term climate. I think you misunderstood the thinking comment. Why would you not think countries in the span of decades are not capable of changing their business policies?

JimMcGregor
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Blogger
re: What do IBM layoffs mean for New York's chip initiative?
JimMcGregor   6/18/2013 2:10:51 PM
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IBM has evolved into a company focused on systems, software, and services. in addition, the market for the ASICs and big iron processors IBM has developed for internal and external use has decreased. So, the announcement should not be a shocker. IBM is still a strong competitor, but semiconductors are no longer a key core competency for the organization.

Consultofactus
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re: What do IBM layoffs mean for New York's chip initiative?
Consultofactus   6/18/2013 12:51:58 PM
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This is what passes for discourse for some people - Bond Number cannot refute the demonstrably true statement that the lower taxes and pro-business attitudes in China and Russia are important factors in US companies out-sourcing so he reverts to what he knows best, name calling. And then he finishes with the suggestion that "some people should think a little more"....classic!

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