Reports out of China have IBM establishing a joint venture with Chinese-based Lenovo, the largest computer manufacturer in China.

Asian press reports that IBM and the Chinese PC maker are discussing ways the two might co-operate to boost their share of the desktop market in China and globally under a dual-brand joint-venture. Initial reports suggest that the two PC giants will begin with a joint venture of five million desktop PC’s, possibly marketed under an IBM-Lenovo brand.

Additional Asian sources tell the TechJournal that this relationship may be more involved than just the desktop market as IBM looks to outsource or sell its entire personal computing division. Sources tell the TechJournal that IBM seeks to eventually outsource all aspects of product development and manufacturing with regards to its personal computing division including both personal desktops and laptops. Sales and support would remain within IBM according to those sources.

Sources say the initial deal with Lenovo is expected to be announced by the end of the year.

An RTP IBM spokesperson had no knowledge of the Lenovo deal and says it is their policy not to comment on rumors.

IBM employs approximately 13,000 employees in the Triangle area, many of which are involved in the Personal Computing Division.

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