IBM 2001 Annual Report Download - page 31

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no. 10
We shared the crown jewels
BUILDING THE OEM BUSINESS
There was a time when all our component technologies, such
as semiconductors and hard disk drives, went inside our own
products. And only there.
That was then, this is now. In order to support our massive
investments in R&D, we needed additional revenue streams,
so we began doing something previously unthinkable
—
selling
our technology products to other high-tech companies.
Fortunately, our technology was so good that we sold a lot of
it
—
multibillion dollars’ worth, creating a large OEM (origi-
nal equipment manufacturer) business.
But that was just for openers. Now is when it gets interesting.
We’re entering a period of explosive demand for semi-
conductors
—
from processors for the largest servers to chips in
everything from your car to your microwave oven, plus billions
of Net access devices like intelligent cell phones or PDAs.
Every one of those devices needs memory, storage and
communications capability, in addition to the processor. And for
every kind of device, there’s a slightly different kind of chip design.
This is a good time to have the largest custom chip business
in the world. We do. In 2001, IBM was one of only two
top-30 chip makers that grew revenue.
FRONTIER LABS
Nex II Digital
Audio Player
NIKON
Coolpix 5000 Digital Camera
e.DIGITAL
MXP 100 Digital
Audio Player/Voice
Recorder
COMPAQ
iPAQ Pocket PC
KYOCERA MITA
ECOSYS Printer
FS-1800