IBM, Motorola End PowerPC Chip Venture
IBM Corp. and Motorola Inc. are ending a seven-year alliance to make the PowerPC chip, saying they’ll target separate markets for the device used in Apple Computer Inc. machines. The two companies said Motorola will take over the Somerset design center in Austin, Texas, they now own jointly. Terms weren’t disclosed, but the center’s estimated 100 workers will be offered jobs with Motorola. The companies joined forces in 1991 to make the PowerPC chip with hopes of nabbing market share from Intel Corp., whose chips run computers with Microsoft Corp.'s Windows operating system. But Apple’s share of the PC market has dwindled to less than 4%. Schaumburg, Ill.-based Motorola will continue to make the PowerPC chip for Apple and push the chip into the computer-networking industry. Armonk, N.Y.-based IBM, the world’s largest computer maker, will concentrate on selling the chip for use in computers, cellular phones and devices. On the NYSE, Motorola shares rose 88 cents to close at $50.13, and IBM rose 25 cents to close at $116.25. Apple rose 31 cents to $28.13 on Nasdaq.