IBM is teaming up with four other chipmakers to develop manufacturing technologies for semiconductors that shrink the average circuit feature to 32 nanometers. The alliance, which is aimed at containing the spiraling cost of building bleeding-edge chips, also involves Chartered Semiconductor, Samsung Electronics, Infineon Technologies and Freescale Semiconductor.

The joint development agreement announced Wednesday builds off previous pacts to pool resources on processes for 90nm, 65nm and 45nm chips. In addition to including work on 32nm bulk complementary metal oxide semiconductor (CMOS) process technology, it includes development of process design kits used to support that technology. The agreement is effective through 2010.

To hear IBM and the others tell it, their collaboration is a testament to their leadership in innovation.

In fact, these companies have no other choice if they hope to remain in business. The cost of adopting a new process node has mushroomed to about $4bn, according to Risto Puhakka, of VLSI Research.

Related stories

• Intel and chums target 450mm wafer fabs
• IBM and chums offer wafer-thin 32nm detail
• IBM's charming smile attracts Hitachi to 32nm research pact
• Toshiba, Fujitsu, NEC want 32nm friendship
• IBM looks for nano solutions with BASF
• Fat chips reduced to small fries
• Freescale scales back staff
• Server market continues to thrive
• Intel swallows Itanic Java pill
• Sun's chip gurus theorize about obliterating IBM and Intel
• Intel chooses China for new chip plant
• Intel announces fourth 45nm fab
• Intel exposes 45nm Core 2 Duo
• 'You'd have to be nuts' to think AMD can match our tick – Intel
• AMD said to have approved foundry's 65nm fab
• Samsung touts 'first of its kind' memory device
• AMD to build $3.5bn fab in New York
• Japanese firms confirm talks to create chip powerhouse
• Intel ponders Oregon fab upgrade
• Fujitsu unleashes 90nm SPARC64
• Sun and Fujitsu to SPARC together
• Intel smiles on Dothan
• IBM builds world's smallest circuit
• Intel eases up in race to 10GHz
• More on AMD and Palladium

With Intel expected to begin production of 32nm chips in the 2009 timeframe, these other companies are under real pressure to follow suit, even though their purses are significantly smaller than Intel's.

As was the case in the past, the joint development agreement calls for research to be conducted at IBM's 300mm-wafer fab in East Fishkill, New York.

IBM and Advanced Micro Devices already have a joint development agreement in place through 2011. ®