IBM Plans to Push Custom Microchips

International Business Machines Corp. said it will spend more than $100 million to expand its custom microchip business, including chips for cellular phones, a business dominated by Texas Instruments Inc. Armonk, N.Y.-based IBM’s investment includes adding more than two dozen “chip cores”--basic chip components that can be assembled in various combinations to create new chip designs. The cores will allow IBM to build chips for use in a variety of products, from digital cameras and set-top cable-TV boxes to computers. IBM’s announcement sent Dallas-based Texas Instruments shares down $3.38, or 6%, to close at $52.50 on the NYSE. IBM fell $2 to close at $117.25, also on the NYSE.