TECHNOLOGY - July 28, 1994

Chip-Building Alliance Formed: International Business Machines Corp., AT&T; Corp., Motorola Inc. and Loral Corp. are joining forces to develop a new computer chip-making technology based on X-rays instead of ultraviolet light. X-rays are expected to allow the production of chips with circuits half the width of those found today, making it possible to pack more transistors on a chip. This heavyweight alliance comes as companies in the semiconductor industry increasingly seek partners to spread the high costs of developing new generations of chips, said Ronald Brown, an analyst with Dataquest Inc. The alliance will be formally announced in the next several weeks, an IBM spokeswoman said. Marketable products are not expected until early next century.