International Business Machines is in talks to buy Sun Microsystems in a combination that would bolster IBM's heft on the Internet, in data storage and in government and telecommunications areas, according to people familiar with the matter.

Here's one group you won't hear complaining too bitterly about government spending: Tech executives. While they're careful to avoid promoting any particular political ideology, there's a common refrain among them that with the economy in such rough shape and with customers afraid to spend, it's only natural for governments to step up.

US semiconductor maker Ramtron International has announced that it has entered into a foundry services agreement with IBM. The companies plan to install Ramtron's F-RAM semiconductor process technology in IBM's Burlington, Vermont, advanced wafer manufacturing facility.

Rumors at ISSCC and other events are that Taiwan foundry vendor United Microelectronics Corp. (UMC) is mulling over plans to join IBM's "fab club." The group, which co-develops advanced process technology and shares the associated costs, consists of AMD, Chartered, IBM, Infineon, ST, Toshiba, NEC, Freescale and Sony. AMD's proposed foundry spin-off is also part of the group.

New multiyear deals expand IBM’s involvement in large-scale business IT projects to India’s Idea Cellular, Sweden’s Sony Ericsson and Spain’s Endesa. The agreements re-emphasize the role of IBM’s Global Services in bolstering the company’s bottom line even in the midst of an international downturn.

A post on the Website of employee group Alliance for IBM said the company may cut 16,000 jobs, which would top the 15,600 eliminated by CEO Sam Palmisano in 2002. The worldwide slump has tightened companies' technology budgets and IBM may report a 1.6% drop in sales last quarter to US$28.4 billion, based on the average analyst estimate.

...if you understand the reasons why people move from one technology to the next, i.e., 45 to 32, what are the things you're looking for? You're looking for increased performance, reduced power, and above all, you're looking for increased density. Density means size, size means cost, and cost means profit. In SOI, you're taking two of the three of those reasons to move, and providing them without moving. IMoving from 45 bulk to 45 SOI, if your application demands it, probably gives you a better performance increase than moving from 45nm to 32n

IBM has also bolstered parts of the shaky SOI supply-chain to propel its initial SOI foundry service in the market. But some wonder if the technology will gain traction amid the current IC slowdown and economic crisis. To fuel a new class of SOI designs, IBM will provide a 45-nm foundry service within its own fabs. As part of the plan, Singapore's Chartered Semiconductor Manufacturing will act as a "second source" foundry for IBM's 45-nm SOI offering. And ARM Holdings announced a physical IP library offering for IBM's SOI technology.

TSMC has pushed out or delayed its initial high-k/metal-gate offering until 28-nm. In contrast, IBM and its partners plan to offer what they claim is a better gate-stack solution at 32nm. As previously reported, IBM, Chartered and Samsung plan to offer a high-k and metal-gate solution for 32nm. The companies in IBM's fab club will not offer a SiON option at 32nm and beyond.

The money will be split between three projects related to chip nanotechnologies, IBM said. They are updating its manufacturing plant in East Fishkill, New York; expanding its operations at the University of Albany's College of Nanoscale Science and Engineering, a creating a new center for research into chip packaging at a location to be determined in Upstate New York. IBM didn't say how much money was going to each.

...With the low-power mobile market space as the high-growth market opportunity, IBM Vice President Gary Patton highlighted the differences between the high-k/metal gate process that IBM and its Fishkill process development partners will offer compared with TSMC’s announced plans to introduce a 32 nm transistor with a nitrided oxide (SION) dielectric and polysilicon gate...