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IBM expands chip-design unit

IBM has established a new chip design team to be part of its Engineering and Technology Services group. The 40-member team, based in Haifa, Israel, will work with Big Blue's customers to create and test new processors and other chips, the company said Wednesday.

IBM launched the Engineering and Technology Services group last October as part of an effort to generate revenue by offering customers its expertise in chip design and manufacturing. The new team, created by culling engineers and scientists from several IBM divisions, brings the total number of employees in the group to about 1,000.