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April 3, 1989

IBM” HAS BEGUN FABRICATION OF ITS OWN 80386S”

By CBR Staff Writer

In a move that could scarcely have come at a worse time for Intel Corp, and is also bad news for personal computer clonemakers who compete on price, IBM has begun fabricating 80386 microprocessors at its Burlington, Vermont site according to Computer Systems News. The company has long had the right to make up to 20% of its requirement for the chips, but after finding it hard to meet demand for most of 1988, Intel caught up with a vengeance at the end of the year, so much so that customers started asking for shipments to be deferred. The move should also enable IBM to reduce its costs on 80386-based PS/2s. It is expected to come out with a PS/2 Model 70 or 80 clocked at 33MHz soon.

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