Intel, Siemens to Team Up on New Computer : Venture to Challenge IBM, Other Big Rivals
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Intel Corp., a Silicon Valley pioneer known best for its personal computer chips, and Siemens AG, a West German electronics firm, have formed a joint venture to produce an advanced new computer designed to rival those from IBM and other high-tech giants.
Details of the new company, to be called Biin (pronounced bine), were sketchy. But analysts speculated that the 50-50 partners each are making initial investments of $10 million to $15 million.
Joseph J. Kroger, former vice chairman of Unisys and the chief executive of Sperry Corp. before its merger with Unisys, was selected to head the new company, which will be based in Hillsboro, Ore.
“Kroger is a heavy guy,” said one analyst. “By picking him they are saying that they mean serious business.”
Intel officials said the joint venture has been under discussion for the past “couple of years.” However, Intel officials declined to reveal details of the pact.
Will Zachman, a computer analyst with International Data Corp. in the Boston area, said Biin’s systems will compete directly against those from IBM, Digital Equipment, Tandem and other makers of large, mainframe computers and mid-size computer systems.
Specific uses for the machines were not revealed. However, potential applications include “on-line” transactions, such as computer-to-computer order entries and credit checking. Another possible use is computer-driven manufacturing, where computers actually manage and direct the fabrication of products.
The partners said Biin is expected to begin production in both Oregon and at a West German plant by year-end.
Zachman, who has been briefed on the project, said he believes it has “the potential to be a big deal.”
Zachman said the joint venture is designed to allow Intel to continue to pursue its primary chip-making business, while still participating in the computer systems market. The company makes microprocessors and other semiconductors used in personal computers as well as the private label personal computers.
