Since Intel enjoyed higher profit margins, it could invest those profits by building additional chip fabrication plants, or fabs, and idling some number of its existing fabs while it modernized them. More modern fabs meant lower production cost, which meant better profit margins.
IBM had its own chip fabrication plant in Burlington, Vt. and was capable of manufacturing CPUs. Eventually IBM did produce 386 and 486 CPUs, but not immediately. According to the April 10, 1989 issue of Infoworld, it wasn’t until early April 1989 that IBM exercised its option to start making 386 CPUs itself.
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