IBM’s R&D effort can only be justified by innovation. Manufacturing has been outsourced since 2015 and scale factors determine price competitiveness in manufacturing. Once you have given up manufacturing , you have given up your independence and are relegated to your suppliers capabilities in process development and manufacturing. There is a good chance you are going to miss out on the intricate, iterations and details between product and process development and your prowess in R&D is gradually running dry. This is what I see happening at IBM, this is the great danger Intel sees going forward, hence its plans to establish new foundries in the US despite the prohibitive $ 20 billion costs and the huge business risks associated with this bold move. IBM is a beautiful example of what happens if you discontinue manufacturing. It may claim the next innovate chip node, but if your supplier can’t produce it because it is too complex, the show stops.
A combination GF and Lightwave would be “ life threatening” for IBM and Intel. I am afraid that both these American icons need to come to grips with a changing semi conductor landscape and IBM needs a business decision in stead of battling it out in court of justice. Waste of energy and money!
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