Tundra pulls plug on IBM deal
Ottawa based interconnect specialist Tundra has terminated a product acquisition agreement it signed with IBM Global Engineering Solutions in August 2007.
Under the terms of the deal, Tundra was to pay $15.4million for a product based on an IBM Power Architecture 90nm processor core. However, IBM has told Tundra that the core’s performance is lower than expected. Tundra says that, since the core cannot meet the stated performance, the product is now unsuitable for its intended target applications and market.
So far, Tundra has not identified the product it was working on. However, the company says it is now pursuing ‘alternative means’ to execute it smart system interconnect strategy.
The agreement was extended in November 2007 to encompass 65nm Power Architecture solutions. As a result of the decision to terminate the 90nm agreement, and based on a review of the current IBM performance data for the 65nm core, Tundra has also terminated that agreement.
