X

IBM still hammering out China factory ownership

If Lenovo moves into a facility IBM co-owns, it would be working side by side with its domestic archrival.

Michael Kanellos Staff Writer, CNET News.com
Michael Kanellos is editor at large at CNET News.com, where he covers hardware, research and development, start-ups and the tech industry overseas.
Michael Kanellos
Although IBM will sell the assets of its PC unit to China's , an unusual wrinkle has emerged with the sale of its factory in Shenzhen, China. The factory--which manufactures laptops for the Chinese market--is technically property of International Information Products, a joint venture owned by IBM and Great Wall Technology. Great Wall and Legend are archrivals, creating a situation akin to having Dell and Hewlett-Packard share a building.

An IBM spokesman stated that IBM will transfer its part of the venture to Lenovo and is trying to craft a solution for determining what to do with Great Wall's interest. Although Lenovo is buying IBM's PC group, the Shenzhen factory is one of the few manufacturing facilities IBM still owns. It sold its PC facilities in the United States to Sanmina-SCI in 2002.

Computing Guides

Laptops
Desktops & Monitors
Computer Accessories
Photography
Tablets & E-Readers
3D Printers
MICHAEL KANELLOS
Staff Writer, CNET News.com
Michael Kanellos is editor at large at CNET News.com, where he covers hardware, research and development, start-ups and the tech industry overseas.