IBM's Kelly Moved Aside In Chip Reorg

SAN JOSE, Calif. — John Kelly III, senior vice president of technology within IBM Corp.'s Systems and Technology Group, has been quietly shifted to a new role as part of a major reorganization of IBM's chip operations.

Kelly had been responsible for IBM's Microelectronics Group and its Engineering & Technology services unit. Prior to assuming that role in August 2000, he was general manager of IBM's Microelectronics Group, the semiconductor arm of the company.

An IBM spokesman confirmed on Tuesday (Oct. 12) that Kelly has taken a new role within IBM, but did not elaborate on the new position. "There have been some changes," the spokesman said. "[Kelly] has taken a different role."

The move follows a series of problems within IBM's chip unit. The unit continues to wrestle with its yields, but the company claims it is close to resolving those nagging issues. IBM recently disclosed a $150-million loss within its struggling semiconductor unit alone due to ongoing chip yield issues and a drop in intellectual property revenues (see May 12 story).