IBM Introduces New Processor Chips Taps Samsung in Manufacturing

Technology company International Business Machine. (IBM) launched a new processor chip type for data centers, according to IBM the new chip has the ability to handle three times the workload of its predecessor.

IBM says the new chip will be dubbed Power10 chip and it’s made to be majorly used by businesses inside data centers.

The company will be incorporating fellow tech giant Samsung Electronics Co (005930) in its new product as IBM will design the chip and Samsung will be involved in manufacturing of the chip.

In addition, the chip will be using the manufacturing process Samsung uses to produce its 7-nanometer chip. Other chip manufacturers in the sector like Advanced Micro Devices Inc. (AMD) and Taiwan Semiconductors Manufacturing Co (2330) also use the same manufacturing process.

IBM and AMD have been using outside chip factories to compete with Intel Corp (INTC) which is a dominant player when it comes to chip production in data centers. Additionally, Intel is also among the few players in the sector which designs and manufactures its own chips.

IBM is known for focusing on high performance computer system, in the list of world’s top ten fastest supercomputers, three of them use IBM’s chips.

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