SEATTLE -- Microsoft will increase supplies of its Xbox 360 games console to retailers by two to three times, beginning this week.

The company, which due to component shortages has struggled with production of the popular device, has lowered its target to 4.5 million to 5.5 million units to be shipped by June.

The component situation has been resolved, the company said.

Microsoft outsources production of the consoles to Wistron, Flextronics and Celestica.

SAN JOSE -- Verigy Pte. Ltd., the ATE branch of Agilent which is on track to be spun off,  will outsource its manufacturing to Flextronics beginning later this year.

The plan was detailed in a S-1 filing required as part of Verigy's proposed initial public offering.

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NEW YORK -- IBM has signed a long-term contract with Solectron Corp. to manage billions of dollars in indirect procurement services across 17 countries. Other terms of the contract were not disclosed.

Under the contract, IBM will manage more than $1.2 billion per year of indirect spend for temporary contract services, office equipment, utilities and telecommunications. IBM will integrate its procurement software with Solectron's internal systems and controls.

IBM will enable Web-based requisitioning as well as efficient procurement and supplier payment.

"The savings we expect from this contract with IBM will contribute to both operational and process innovation and simplification, which improves services to our customers and suppliers," says Perry Mulligan, chief procurement officer, Solectron, in a prepared statement.

IBM will supply commodity experts, a global contact center and an accounts payable processing center supporting Solectron suppliers and employees around the globe. Solectron will also have access to a full range of transformation and maintenance services from IBM.

SAN JOSE -- The Semiconductor Industry Association today launched a new website on America’s competitiveness. The site is the latest in a series of activities designed to focus attention on steps to take to ensure American leadership in innovation and technology.

The site, located at www.choosetocompete.org, details the industry’s importance to the everyday life of Americans and the need for public policies that foster a competitive economic environment for Information Technology industries.

“For more than 50 years, America has been the world leader in innovation and technology,” said SIA president George Scalise. “Leadership in innovation and technology has been essential to continuous improvements in the U.S. standard of living, increased productivity and higher wages for American workers, and ensuring national security. Today other nations are working very hard to replicate our model for success. This Website presents a series of broadly supported public policy initiatives designed to meet the new global competitive challenge and secure America’s leadership in technology and innovation.”

The site includes information showing the importance of increased federal support for basic research at U.S. universities, updated education and immigration policies that will allow American companies to maintain employment within its borders, and economic policies that enhance the climate for investment in high-tech facilities for manufacturing, research and development, and product design.

Other areas of the site provide information on critical applications of chip technology – from agriculture to medical science and national defense. The site also features news updates on the growing momentum for action on bipartisan proposals on American competitiveness, information on proposed legislation and links to partner Websites.

In April SIA will add an interactive tool outlining the key points in the modern technology timeline, illustrating the critical role of semiconductors in a broad range of applications, and presenting the challenges now faced by America’s technology sector.