With IBM Corp dumping its interest in the Somerset, the Microprocessor Report notes that Big Blue will lose one of the three components to its PowerPC strategy, which previously encompassed servers, midrange CPUs (for Apple Computer Inc), and its 40x ASIC cores. Without Somerset, IBM will have no midrange processor cores to replace the existing 740 and 750 G3 series. Instead, IBM’s embedded design center near Raleigh (North Carolina) plans to cherry pick CPU designs from the company’s three high-end design centers in Rochester, New York; East Fishkill, New York; and Austin, Texas. The Report says Motorola Inc will continue to use Somerset to develop new midrange embedded processors, including new cores for its integrated communications and networking chips. IBM offers cores to third parties for ASIC development while Motorola will market packaged parts. Thus, the two companies will split along custom/commercial lines, as well as over microarchitectural implementations. The Report expects both companies to continue to have access to the 603e/604e and 740/750 processor cores and use them in ASIC designs. After 1999 they’re expected to work on separate cores. The report expects IBM’s processors will have somewhat lower performance than Motorola’s, which will follow the previously published PowerPC roadmap more closely.