IBM and CommQuest Technologies Announce Merger

Strategic Insights -

IBM, a leading technology company, and CommQuest Technologies, a privately held semiconductor company, have entered into a merger agreement that will accelerate the development of multifunction, low-cost, mobile "information appliances." The merger will combine IBM's expertise in semiconductor technology and manufacturing with CommQuest's recognized chip design and system skills for wireless communications products. This strategic move will expand IBM's OEM business and enable the company to offer innovative technology solutions to its customers.

Key Takeaways:

  • The merger between IBM and CommQuest Technologies will enable the development of new generation of multifunction, low-cost, mobile "information appliances."
  • CommQuest's team of skilled semiconductor design, software, and system engineers will bring the advantages of silicon germanium technology to the communications industry.
  • The joint product development will utilize IBM's leadership copper chip technology, allowing further reductions in communications system power requirements.
  • The companies predict silicon germanium will become the core chip technology enabling a wide variety of hand-held communications and computing devices.
  • Analysts expect chip industry revenues derived from digital wireless communications applications to grow more than 20 percent annually over the next four years.

Statistics:

  • 20 percent annual growth rate in chip industry revenues from digital wireless communications applications (IBM and CommQuest, 1998)
  • Thousands of transistors can be integrated onto a single silicon germanium chip (IBM, 1998)
  • IBM has perfected a unique method for manufacturing silicon germanium chips that requires only slight additions to standard CMOS chip making processes (IBM, 1998)

Sources:

  • IBM and CommQuest Technologies, "IBM and CommQuest Technologies Announce Merger Agreement" (Business Wire, Feb. 11, 1998)
  • IBM, "IBM and CommQuest Announce Merger to Speed Development of Next Generation of Wireless Communications Devices" (Internet press release, 1998)
  • CommQuest, "About CommQuest Technologies" (Internet website, 1998)