Solectron buys IBM assembly line

IBM has sold its worldwide printing circuit board (PCB) assembly operation for its mobile computers to electronics manufacturer Solectron for an undisclosed sum, in a move that sheds Big Blue of yet more inventory responsibilities.

The sale will include intellectual property and supply rights to motherboard assembly in IBM's mobile product range.

As part of the agreement, Solectron will provide fully integrated PCB manufacturing services to IBM over the next three years. These will include the design, volume production, PCB assembly and testing and end-of-life support of the machines. In addition, Solectron will take charge of inventory, which will be monitored via electronic links between IBM, Solectron and component suppliers.

Solectron will also acquire IBM's electronic card assembly and test operations in Austin, Texas.

The move signifies further attempts by IBM to divest itself of inventory responsibilities, after introducing channel assembly and configuration in September 1997.

Solectron and Ingram Micro forged a global alliance in June in which they sought to provide global build-to-order and configure-to-order assembly services for PCs, servers and related products in the US, Canada, Europe, Asia and Latin America. Ingram's assembly plants around the world promptly rose to 11 from five as it set up an additional plant in Ireland to accommodate the extra capacity. It is not clear whether Ingram has a channel assembly role with Big Blue following the IBM/Solectron deal.

Both IBM and Ingram Micro were unavailable for comment.