Once stalled in litigation, a chip is reborn

A lot of companies look to IBM for microprocessors, but arguably none are looking to the company more ardently this month than manufacturers of embedded systems.That’s because it has agreed to manufacture the ZFx86, a so-called PC-on-a-chip from ZF Micro Solutions of Palo Alto, Calif.
Once made under licence from ZF Micro by National Semiconductor, the chip has been off the shelves since 2002, when it became tied up in a legal battle.
A reported US$20 million settlement by National at the beginning of the year paved the way for Big Blue to come to ZF Micro’s rescue.
Among those waiting for IBM’s first test wafer to be baked is Doug Stead, president of the Tri-M Group of Calgary, which sells embedded computer systems.
The chip was so essential to his sales that when production stopped he borrowed $1 million to buy as many as he could for the systems he builds.
“We just built our last of 500 boards,” he said last month. “So we’re going to run out of product just when the new chips are coming on stream.”
That’s if things go well.
“We’re hoping that by the end of November or the first week of December we’ll have our first chips,” said ZF Micro CEO David Feldman.
Made at IBM’s Burlington, Vermont facility, they’ll be shipped to a San Francisco company for assembly and packaging.
Volume production is expected to start in the first quarter next year.
Feldman wouldn’t give details of the IBM deal, other than to say he hopes to buy “thousands of wafers over the next few years.”
“I have people really desperate for chips,” he said, including a company with a U.S. government contract.
All this over a chip that’s hardly leading-edge: It’s based on 80486 technology.
But it has virtues: The CPU comes with a full chipset, ports, a BIOS and what the company calls a FailSafe mechanism for restoring operations after a system failure.
It’s perfect for products Stead makes, including ruggedized, low-power desktops for hostile environments and power supplies for trains. Earlier this year he sold 1,000 ZFx86-powered units that run police car transmitters to Turkey.
Stead, who testified for Feldman at the trial, calls the settlement with National a “David and Goliath story.”
Feldman admits it was a “major relief” that IBM will try to make his chip and possibly new generations.
“We need to rebuild our credibility in the marketplace,” he said, “and it’s important IBM has agreed to do this. I don’t think there’s many company’s that don’t trust IBM.”

Would you recommend this article?

Share

Thanks for taking the time to let us know what you think of this article!
We'd love to hear your opinion about this or any other story you read in our publication.


Jim Love, Chief Content Officer, IT World Canada

Featured Download

Howard Solomon
Howard Solomon
Currently a freelance writer, I'm the former editor of ITWorldCanada.com and Computing Canada. An IT journalist since 1997, I've written for several of ITWC's sister publications including ITBusiness.ca and Computer Dealer News. Before that I was a staff reporter at the Calgary Herald and the Brampton (Ont.) Daily Times. I can be reached at hsolomon [@] soloreporter.com

Related Tech News

Featured Tech Jobs

 

CDN in your inbox

CDN delivers a critical analysis of the competitive landscape detailing both the challenges and opportunities facing solution providers. CDN's email newsletter details the most important news and commentary from the channel.