Table: IBM Inside

Here's how Big Blue plans to turn up the heat:

BUILDING FOR THE FUTURE

IBM (IBM ) is pressing ahead with a $5 billion investment in plant and equipment. That includes plans to open a state-of-the-art, $2.5 billion chip plant in Fishkill, N.Y., by August, 2002.

CUTTING A SMIDGEN

So far, IBM is making minor cutbacks on subcontractors and new equipment for lower-growth networking chips that are used in older routers and switches. It's also slowing installation of gear used to make chips with older materials, such as aluminum wiring.

CHASING NEW MARKETS

Big Blue aims to grow by supplying chips for such devices as cell phones, set-top boxes, and video-game consoles, hiking those areas' share of revenues from the low teens today to one-third in a few years. A new Nintendo game machine that features IBM chips is due out in September.

DATA: IBM, Gartner Dataquest

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