IBM backs B2B electronics exchange

IBM is set to launch a global Internet business-to-business exchange for the telecommunications and electronics industries, according to industry sources.

The exchange - for buying and selling semiconductors, assembly components, and manufacturing services - is expected to start operations in the next few months. The partners' combined buying power is estimated to be in the $US200 billion range, according to sources.

Reportedly, the exchange, to be named e2open.com, will have support from Nortel Networks, Motorola, Nokia, Philips, LG Electronics, Hitachi, and five other telecommunications and electronics vendors worldwide. It will start with more than $US200 million in financing from its founding partners and venture capital partners Crosspoint Venture Partners and Morgan Stanley Dean Witter.