Intel Corp shares were bouncing late Tuesday, closing up $4.375 at $101.375 on excitement generated by a suggestion from Alex Brown & Sons analyst Erik Jansen that he believed Intel was negotiating to use an IBM Corp chip plant in order to boost production of 80486 and Pentium computer. Neither side was prepared to comment on the suggestion, but given IBM’s surplus manufacturing capacity, such a deal would be good sense. The analyst reckons that such additional manufacturing capacity could boost Intel profits by some $0.50 to $1.00 per share, as early as the last quarter of 1993. Separately, US PC Week highlights Intel’s unhappiness with the cavalier way in which IBM has been offering to all and sundry the iAPX-86 chip variants it has designed under its second source agreement with IBM, and suggests that the agreement is being renegotiated, and that IBM may get the right to make enhanced versions of the Pentium only if it agrees to strict limits on how many it can make for itself or sale.
